The Goodwill Discount is a special, one-time reduction given to existing Hire-Purchase (HP) customers who choose to settle their loans early.

This initiative follows the Hire-Purchase (Amendment) Act 2026 (HPAA), which takes effect on 1 June 2026. It aims to align existing "flat rate" loans with the fairer "reducing balance" method used for new loans.

We want to enable our existing customers to also benefit from the new HPAA standard as older loans use the "Rule of 78" (where interest is front-loaded) while the new HPAA standard uses a reducing balance method.

The Goodwill Discount bridges the gap between these two methods to give you an improved (lower) settlement price.

The Goodwill Discount is available for early settlements made on or after 1 June 2026.

The amount is calculated by our system based on:
• Settlement Timing: The earlier you settle your loan, the higher the discount is likely to be.
• Original Interest Rate: Your original flat rate is compared against its Effective Interest Rate (EIR) equivalent.
• Remaining Tenure: We look at how many months were left in your original contract to determine the "interest gap."

To qualify for the Goodwill Discount at the time of settlement, you must meet the following criteria:
• Account Status: Your account must not be in arrears for more than 90 days.
• No Legal Action: There are no active repossession orders or ongoing legal proceedings regarding your vehicle.
• No Debt Restructuring: You are not currently under a Restructuring & Rescheduling (R&R) plan.

No application is necessary! If you meet the eligibility criteria, the Goodwill Discount will be included in your early settlement quote when you request it through the Boost Bank app or customer service starting 1 June 2026.

No. The Goodwill Discount only applies if you choose to fully settle your loan before the end of its original tenure. Your regular monthly installments remain the same.

Starting 1 June 2026, you can request for early settlement directly via the Boost Bank App or by contacting our Support Team. Your statement will clearly show your remaining balance, the statutory rebate, and the additional Goodwill Discount.

While the new Hire-Purchase (Amendment) Act 2026 officially transitions to the reducing balance method on 1 June 2026, Boost Bank has protective measures in place for our existing customers:
• The Goodwill Discount Advantage: If you sign your agreement now and decide to settle your loan early after 1 June 2026, we will apply a Goodwill Discount. This discount is specifically designed to adjust your settlement figure so that it is broadly comparable to the new reducing balance method.
• Identical Total Cost: If you plan to keep your motorbike for the full duration of the loan, the total interest you pay remains the same under both the old and new methods.
• Immediate Ownership: Waiting until 2026 may mean missing out on current promotions or facing changes in vehicle pricing and COE/road tax costs.

You may refer to official websites of: 
• The Association of Banks in Malaysia (ABM): www.abm.org.my 
• Association of Islamic Banking and Financial Institutions Malaysia (AIBIM): www.aibim.com