Alliance Bank, Maybank and CIMB have started offering basic credit cards with financing rates capped at 14% a year, Prime Minister Anwar Ibrahim said when he tabled Budget 2027 in the Dewan Rakyat on 9 October.
Anwar, who is also Finance Minister, thanked the three banks for offering the cards.
They are part of a push for cheaper credit that the Ministry of Finance (MOF) first announced in July with Bank Negara Malaysia (BNM) and the banking industry.
14% Instead of 18%
Under the MOF framework, basic credit cards charge no more than 14% a year on outstanding balances, compared with the current maximum of 18%.
Banks also set credit limits at more controlled levels, and existing cardholders can move balances from other cards to a basic card without paying fees or charges.
The cards drop rewards such as cashback and air miles in favour of lower borrowing costs.
The lower rate matters only for cardholders who carry a balance rather than paying in full each month.
Three Cards, One Rate Cap
Alliance Bank has refreshed its Visa Basic card, which has charged a flat 14% since 1 October and no longer charges interest on unpaid interest, Newswav wrote.
The card has no annual fee, and Alliance Bank caps its credit limit at RM20,000 or twice the cardholder’s monthly income, whichever is lower.
Maybank Islamic has opened applications for its Nadi Mastercard Credit Card-i, while CIMB Islamic has launched the CIMB Lite-i Credit Card, according to The Star.
Both are Islamic cards with a fixed, non-compounding profit rate of 14% a year, which CIMB said applies across all customer tiers.
More Banks to Follow
Nine banks representing about 62% of Malaysia’s credit card market are expected to offer basic credit cards by November, Utusan Malaysia reported.
RHB Bank has also announced its Sinar Credit Card-i under the same framework.
Featured image: Edited by Fintech News Malaysia based on images by rawpixel-com and vinkf via Magnific.
