Banks must adjust loan rates within 7 days of OPR cut, says ABM
In an email to Business Times, ABM said the 0.25 per cent OPR cut announced on July 9, 2025, must be reflected in loan interest rates by July 18, 2025.
The clarification comes amid public concern over delays in housing loan instalment adjustments, triggered by a viral blog post in which customers shared their frustration after being told that their lower monthly repayments would only start on September 5 – almost two months after the OPR reduction.
One customer, who contacted their bank to request an updated instalment amount and outstanding loan balance in preparation for early settlement, was surprised that the revised monthly payment had not yet taken effect, despite the new interest rate already being reflected in the system.
ABM explained that while interest rate adjustments are made within the stipulated timeframe, changes to instalment amounts may vary across banks due to differences in internal systems, operational processes, and billing cycles.
"Such variation is not unusual and reflects operational differences between institutions. Nevertheless, the revised instalments must be implemented no later than 90 days from the OPR change.
"Rest assured that the loans with variable interest rates will already be subject to the revised interest rates within seven working days from the OPR change," ABM said.
ABM said that banks are also required to notify customers at least seven days before the new instalment takes effect. Borrowers are encouraged to contact their banks for precise information tailored to their individual loan accounts.
For borrowers planning to redeem their loans during this period, ABM advises requesting an updated redemption statement, which will reflect the new rate and the revised outstanding balance.
"Banks remain committed to passing on rate changes to customers fairly and accurately.
"We encourage borrowers to reach out directly to their banks for clarification and to ensure they receive timely, accurate information tailored to their loan account," it added.
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