Malaysia legislation

Section 20

of HIRE-PURCHASE (AMENDMENT) ACT 2026

Section 20

Substitution of Sixth Schedule

The principal Act is amended by substituting for the Sixth Schedule the following schedule:

“Sixth Schedule

[Section 30]

TERMS CHARGES

Where the terms charges are at a fixed or variable rate, the terms charges shall be calculated in accordance with the following formula:

Where

C represents the amount of terms charges expressed in ringgit and fractions of ringgit

R represents the terms charges calculated as an effective interest rate per centum per annum

T represents the number of scheduled payments per annum

N represents the total number of instalments for the hiring period

P represents the difference between the cash price of the goods comprised in the agreement and the amount of the deposit, together with—

(a)

freight, if any;

(b)

vehicle registration fees, if any; and

(c)

insurance, if any, expressed in ringgit and sen.”.

Deletion of Seventh Schedule