Finance Minister: No more accrued interest for HP loan moratorium

KUALA LUMPUR, May 6 — The Finance Ministry has stated that the total amount for hire-purchase loans, both conventional and Shariah, will not change as no compound will be imposed nor will the loan accrue interest during the six-month moratorium.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said this decision was made after discussions with the banking industry.

“To this, borrowers must resume their loan repayments as usual based on the terms of agreement with their respective banks. This includes an additional six months to the total repayment schedule if they choose to join the moratorium,” he said in a statement.

Tengku Zafrul said further information can be obtained from the respective banks, adding the government hopes this can reduce the burden of the rakyat during this challenging time.

Earlier on, the Association of Banks Malaysia had said borrowers wishing to take up the moratorium from April to September had to formally confirm with their respective banks via email, letters, website information, as well as SMS and push notifications.

Those who take the moratorium had the option of paying the accumulated six months’ deferred installments together with their October instalment without being charged any additional interest.

The other option is for borrowers to resume the installation repayments after October with an extension of six months in repayment period after the original maturity date, but with its interest dependent on the contractual rate and will be charged based on the amount of delayed instalments that are outstanding until they are fully repaid by the end of the extended six-month period. —  Malay Mail

[ IMAGE SOURCE ]

Related reading