We take a look at the loan moratorium offered by major banks in Malaysia under PEMULIH. Is the automatic six-month loan moratorium worthy of consideration or will it come back to haunt you?
On the back of a prolonged MCO 3.0/FMCO lockdown or National Recovery Plan (NRP), as Prime Minister Muhyiddin has termed it, the government has introduced a wide-reaching PEMULIH stimulus package, which includes an automatic six-month loan moratorium.
As reported before, this covers hire purchase loans for cars and is similar to the moratorium that was effected between March and August 2020. There are no pre-requisite conditions – such as loss of job or reduced income - to qualify for the loan moratorium under the current PEMULIH programme. Borrowers are simply required to contact their lender bank to verify and alter the tenure of their loans, and if required, sign a formal agreement.
For those who thought that the moratorium is a simple pause and delay on their hire purchase loans, they are advised to think again, as Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has confirmed that the moratorium offered under the PEMULIH package would not be interest-free, however, banks would waive compound interest and penalty charges for borrowers as part of the moratorium.
This is a crucial point to note, as the simple interest accrued over the next six months can still be re-amortised to the loan payment schedule after the moratorium ends.
With that being said, let's take a look at what major banks in Malaysia are offering. Generally, most offer either a six-month postponement or a 50% reduction for six months.
The consequences of choosing the postponement will be that your total interest paid will be higher due to the tenure extension, and the caveat of the 50% reduction is that the outstanding balance will generally be paid at the end of the loan tenure, one lump sum.
We recommend that you talk to your banks before taking up any kind of loan moratorium.
AmBank offers two plans, the first being a deferment of instalments for six months, while the other is a 50% reduction of instalments for six months.
For more information, you may contact AmBank at 03-2178 8888 or e-mail them at email@example.com.
Hong Leong Bank
Hong Leong offers two plans, the first being a deferment of instalments for six months, while the other is a 50% reduction of instalments for six months.
For more information, you may contact HLB at 03-79591888 or 03-76268899, or e-mail them at PaymentRelief@hlbb.hongleong.com.my
CIMB's offering is slightly different from the former two banks mentioned above as they allow you to take a deferment of instalments for either three or six months. CIMB does not offer an outright 50% reduction scheme.
For more information, you may contact CIMB at 03-62047788 or e-mail them at firstname.lastname@example.org
Just like AMBank and Hong Leong Bank, Maybank offers two plans, the first being a deferment of instalments for six months, while the other is a 50% reduction of instalments for six months. Maybank clearly states that there are term charges for deferred instalments, RM471 for the 6-month postponement and RM258 for the 50% reduction.
For more information, you may contact Maybank at 1-300-88-6688, or e-mail them at email@example.com
Public Bank's offering is identical to Maybank's. Even their term charges for deferred instalments are the same.
For more information, you can contact Public bank at 1-800-22-5555 or e-mail them at firstname.lastname@example.org
RHB provides three different alternatives, including a customised reduction in monthly instalments by extension of the loan, on top of the regularly seen 6-month postponement and 50% reduction.
For more information, contact RHB at 03-2776 3111 or e-mail them at email@example.com
So there you have it above, a compilation of what some of the major banks in Malaysia have to offer on the loan moratorium under the PEMULIH stimulus package. Is it sufficient, is it what Malaysians need or is it merely a delayed haunting as my colleague Jim explores here.
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