3.9 per cent. EON Bank, in a circular, says it will charge 3.9 per cent for new car loans effective August 1, 2008, up from 2.7 per cent. This is the second increase in car loans interest rates in a month.
Expect other banks to do likewise. Also expect it to be harder to get your loan approved. In times of crises, our financial institutions have proven to be very shy in approving loans. Back in 1997, for example, Mahathir had to force the banks to stop acting like a pussy, and to start approving loans and, therefore, encouraging spending in order to revive the economy.