6-Month Moratorium Starts Tomorrow But You’ll Pay More Later If Tenure Is Longer, Says Bank Negara
Those who opt for lower installments will have to extend their loan tenure.
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Borrowers who opt for the six-month long moratorium will see an increase in overall costs of borrowing as the interest or profit will continue to accrue on deferred payments, said Bank Negara.
The Central Bank issued a statement today, announcing that individual and microenterprise borrowers, as well as SMEs affected by the pandemic, may start applying for the six-month moratorium from 7 July 2021 onwards.
In addition to the moratorium, local banks will also offer a reduction in installments and other packages, including rescheduling and restructuring financing to suit the specific financial circumstances of borrowers.
Banks will not charge interest on interest, or profit on profit (i.e. compounding interest/profit), or any penalty interest/profit during the period of assistance.
Bank Negara Malaysia
However, opting to maintain lower installments after the moratorium would result in a longer loan tenure, increasing the loan amount, said Bank Negara.
How you can apply for the moratorium
BNM said that borrowers can apply online through a web form or an auto-generated email that will be available on their selected bank’s website to provide their personal and financing details.
Borrowers can also phone their banks and guidance will be provided by the customer service officer.
If borrowers are unable to use these digital channels, they may also visit their bank branches to submit their request for the moratorium. However, they are advised to check with respective banks on any changes in operating hours or arrangements for over-the-counter services due to movement restrictions.
Bank Negara Malaysia
The repayment assistance, Bank Negara said, is applicable for financing approved before 1 July 2021.
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