The SBR is the reference rate that all banks will use starting from 1 August 2022 in the pricing of new retail floating-rate loans, refinancing of existing retail loans, and the renewal of revolving retail loans from 1 August 2022. Retail loans refer to loans to individuals (not SMEs or businesses), while ‘floating-rate loans’ refer to loans where the interest rate can change during the lifetime of the loan.

The SBR is linked solely to the Overnight Policy Rate (OPR), as determined by the Monetary Policy Committee (MPC) of Bank Negara Malaysia.

When the OPR is revised, banks will adjust the SBR by the same amount as the change in the OPR. This applies to both upward and downward adjustments in the OPR.

• Key Highlights of the Revised Reference Rate Framework
• Consumer Guide on the Revised Reference Rate Framework

The SBR was introduced on 1 August 2022.

Indicative effective rate refers to the indicative annual effective lending rate for a standard 30-year housing loan product with financing amount of RM350k and has no lock-in period.