You know the saying, 'there's no free lunch in this world'?
Well, this is proving to be kinda true.
New payment schemes
After announcing in March that individuals can opt to defer their hire purchase loans and Islamic financing plans for a period of six months, Bank Negara Malaysia has announced that banks will now charge additional interests to deferred loans.
In a BNM press release cited by Paultan.org
, the central bank directed banks to inform their loan borrowers, should they decide to opt in on the moratorium, on the changes in the terms of their agreements - "including changes to the payment schedules and/or amounts as a result of the moratorium
According to the Association of Banks in Malaysia (AMB) in this The Star Online
report, those who decide to take up the moratorium -- which took effect beginning 1 April to 30 September this year -- have two repayment options:
1) Pay the accumulated interest charges beginning October 2020 with an adjusted new rate (example: you've been paying RM300 monthly for your car, but beginning October, you'll have to pay RM300 + additional interest charges) and a six-month extension in repayment period after the original maturity date.
2) Pay the accumulated six months’ deferred instalments together with their October instalment with no additional interest charges. Basically, in October, you'll have to pay seven months worth of payment in one go (example: RM300 x seven months).
The interest rate, AMB said, depends on the contractual rate and will be charged based on the amount of delayed instalments that are outstanding.
AMB also said that no additional interest charges or late payment fees will be charged for outstanding April and May 2020 payments if customers had deferred their monthly instalment payment - provided that the payment for both months as well as for June were made by 30 June.
Late payment charges will only be charged beginning July 2020.
What do you need to do now?
If you've already notified your bank that you're not taking the moratorium since 25 March, you do not need to do anything at all.
In fact, you'll automatically be opted out if you do not confirm your acceptance of the moratorium when notified by your bank, and you must continue to pay your monthly instalments according to schedule.
If you wish to take up the moratorium, you are now required to formally confirm this with your bank when they get in touch with you beginning 1 May via SMS, e-mail or registered mail.
They would then inform you about the exact procedures to take up the moratorium, as well as the available payment options for you after the six-month moratorium is over.
If you have any further questions, you can get in touch directly with your bank(s), and they should be able to help you out.