5th March 2026 - 3 min read
Grab users who split purchases using PayLater instalments will soon see a slightly higher borrowing cost.
Starting 9 March 2026, Grab Malaysia will apply a single monthly interest rate of 1.25% to all new PayLater instalment plans. The change replaces the 1% promotional rate that was previously offered on some instalment purchases.
The update only affects instalment plans created from that date onwards. Any PayLater instalment that is already active will continue under the interest rate and repayment schedule agreed at the time the plan was created.
Under the new structure, the same 1.25% monthly interest rate will apply regardless of the instalment duration selected. Whether a purchase is split over four, eight, or 12 months, the interest will now be calculated using the same standard rate.
Previously, some PayLater instalments were offered at a promotional rate of 1% per month. That promotion is ending, which means new instalment purchases made after 9 March will be calculated using the higher standard rate.
For users who regularly convert purchases into instalments, the difference will appear in the total repayment amount. Because the interest is charged monthly, longer instalment periods will accumulate more interest over time.
Grab has clarified that the change does not affect instalment plans that are already in progress.
If a PayLater instalment plan was created before 9 March 2026, the repayment amount and interest rate will remain exactly as originally agreed. Users do not need to make any changes to their existing instalments.
This means the new rate will only apply when a user creates a new instalment plan after the change takes effect.
According to Grab Malaysia, the update is intended to standardise PayLater interest rates across different types of transactions.
Previously, instalment pricing could vary depending on promotions or where the PayLater purchase was made, such as online transactions or in-store payments. Moving to a single rate is meant to make the cost of using PayLater more transparent and predictable for users.
The company has also stated that the 1.25% monthly rate will remain unchanged until at least 31 May 2026. Users will receive advance notice through the Grab app if there are any revisions after that date.
The difference will appear when a user converts a purchase into a PayLater instalment plan after 9 March. The new 1.25% monthly interest rate will be used to calculate the repayment amount, which means slightly higher instalments compared to plans created under the earlier 1% promotional rate.
Existing PayLater instalments will continue under their original repayment terms. Credit limits, eligibility checks, and current repayment schedules remain unchanged, so the adjustment only affects new instalment purchases going forward.
Follow us on our official WhatsApp channel for the latest money tips and updates.
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world
Comments (0)