What is Base Lending Rate (BLR)?

These are the basic information that every home buyer should equip themselves with pertaining to Base Lending Rate.

What is Base Lending Rate (BLR)?

  • A minimum interest rate calculated by financial institutions based on a formula which takes into account the institutions cost of funds and other administrative costs.
  • Typically similar amongst major banks.
  • Adjustments to the BLR are made by banks at the almost same time, though not regularly.
  • BLR adjustments correlate with adjustments of the Overnight Policy Rate (OPR) which is determined by Bank Negara Malaysia (BNM) during Monetary Policy Meeting
  • Effective 1 November 1995, BNM imposed a ceiling on the BLRs quoted by banking institutions. The ceiling rate would be determined by a formula. This framework was further revised on 1 September 1998 to enhance the speed of transmission of changes in BNM’s monetary policy (via revisions to intervention rate and SSR) to changes in the economy’s interest rate levels.

What is the general formula to calculate the ceiling BLR in Malaysia?

Ceiling BLR = Adjusted BNM Intervention Rate + Fixed administrative charge


Commercial banks
Adjsted BNM Intervention Rate = BNM Intervention Rate x 80% / (1-SRR%)


Finance companies
Adjusted BNM Intervention Rate = BNM Intervention Rate / (1-SRR%)
What’s the current BLR?
6.60% (as at 20 Nov 2012)


BLR since year 1980 to year 2012

Leave a Reply

Open chat
WhatsApp Us