You should apply to bank early before interest increase. Once bank approved your loan, their will issue Letter of undertaking (LU) to your dealer. That LU usually will valid for one month since the date of issue. The Bank will follow the interest rate at LU for one month before your car is register in JPJ. Even the LU nearly reach one month, you can actually request Bank to extend the LU without invalidate the original LU to avoid change of interest rate.

By the way, I think your SA did not done his job le. He should inform you to apply hire purchase before interest increase. In my case, my SA informed me the interest will rise on Friday (Next Monday Banks increase interest rate) and I even submit my inform. to bank officer on Saturday (although bank is not open on that Saturday, but their staffs still OT on that day to key-in all last minute application before interest increase). The bank did approved my loan at lower rate and my LU can valid until 20/05/2009. I am getting my new car on next Monday (18/05/2009).

P/S: Those SA should know the interest rate will increase before it effective date since their always deal with bank officers. Bank officers can get those information faster than the media press since their got those information from their internal memo.

This post has been edited by low98944: May 14 2009, 09:26 PM