5th September 2025 - 2 min read
RHB Bank has announced changes to home and commercial property loan instalments for both conventional and Islamic financing. The revision will apply from 5 September 2025, following the bank’s earlier move to reduce its Reference Rates in line with Bank Negara Malaysia’s cut in the Overnight Policy Rate.
From 11 July 2025, the Standardised Base Rate and Standardised Base Rate Islamic were reduced from 3.00% to 2.75% per annum. The Base Rate and Base Rate Islamic were adjusted from 3.75% to 3.50% per annum, while the Base Lending Rate and Base Financing Rate fell from 6.70% to 6.45% per annum.
| Rate Type | Previous Rate (p.a) | Revised Rate (p.a) |
| Standardised Base Rate / Islamic | 3.00% | 2.75% |
| Base Rate / Islamic | 3.75% | 3.50% |
| Base Lending Rate / Financing Rate | 6.70% | 6.45% |
Despite lower rates, some borrowers may see higher instalments. RHB states that recalculations are based on the outstanding principal as of 5 August 2025, the remaining loan tenure, and the effective rate. This approach prevents a lump-sum repayment at the end of the financing period.
Situations such as past moratoriums or the capitalisation of fees, including insurance and legal costs, can also result in higher instalments. In its announcement, RHB provided examples showing how changes in effective rates, even with an overall reduction in Reference Rates, may lead to increased monthly payments.
Customers who face repayment challenges can request to maintain a lower instalment by submitting a Service Request Form at an RHB branch. Each application is subject to assessment. Borrowers may also approach Agensi Kaunseling & Pengurusan Kredit for further advice.
Those who prefer to continue paying their current instalment when a lower amount is calculated may also make a request, but a new application is required each time instalments are revised. The bank notes that adjustments will not be made when the difference is RM5.00 or less.
If you’re considering refinancing or comparing packages, the RinggitPlus home loan page provides more details.
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Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister’s cats.
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