KUALA LUMPUR – Malaysians who apply for the recently announced six-month loan moratorium will not have to pay compounded interest or any late repayment penalty, Bernama reported today.
This was confirmed by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz today in a press conference attended by a small number of media personnel.
“Report and complain if the banks raise compound (interest) or charge a penalty (on the moratorium).”
He said the matter was raised in a recent meeting with banks in the country, and that the financial institutions have given their commitment not to subject their customers to added interests.
Tengku Zafrul said the concept for the loan moratorium announced yesterday is similar to the original initiative rolled out last year, where only the loan period is extended.
He added that the main objective of the latest moratorium is to assist Malaysians who have been impacted by the Covid-19 pandemic.
In announcing the RM150 billion Pemulih stimulus package yesterday, Prime Minister Tan Sri Muhyiddin Yassin had said all Malaysian will now be able to apply for a six-month moratorium on their loans as part of the government’s effort to aid the public in facing the health crisis.
No conditions are set for initiative, although borrowers will need to contact their banks if they wish to opt in, with applications to begin July 7.
Following the announcement, many quarters have expressed concern that banks will charge further interests on borrowers if they choose to opt in for the programme.
Some social media users have shared a previous term by Maybank that extends the loan term for hire purchases by 24 months for a six-month deferment, although the bank has clarified the terms are yet to be updated following yesterday’s announcement.
Meanwhile, several lawmakers have called for the government to ensure an interest-free loan moratorium for all Malaysians.
Former prime minister Datuk Seri Najib Razak pointed out that making the moratorium interest-free would not cause banks to lose a sen, but instead generate profits for them as it remains an opt-in choice.
Borrowers, the Pekan MP said, would still have to sign agreements on new terms, which ensure that their repayments would resume because banks have not exempted them from any interest charges.
Former finance minister Lim Guan Eng outlined his disappointment that the announcement did not mention the zero added interest.
Muar MP and Muda founder Syed Saddiq Syed Abdul Rahman said there should be no additional charges imposed while the moratorium stands, and that the initiative should only mean a six-month delay in repayment. – The Vibes, June 29, 2021
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