Hire purchase customers to pay additional interest charges if they take up moratorium offer

Photo credit: BNM

By Poovenraj Kanagaraj

Bank Negara Malaysia (BNM) has announced that hire purchase loans and fixed-rate Islamic financing will see additional interest charges if customers were to take up the six-month moratorium offer.

Applicants of the six-month moratorium will have to pay the interest charges after the moratorium period and is effective from April 1 to September 30.

In a statement on BNM’s Facebook page, the central bank states that it is important to note that the interest will continue to accrue on loan or financing repayments that are deferred and borrowers will need to honour the deferred payments in the future.

According to the The Association of Banks of Malaysia (ABM), hire purchase customers who wished to take up the moratorium will now be required to formally confirm with their respective banks.

Banks will also announce the exact procedures today for customers intending to take up the moratorium as well as available payment options after the moratorium period is over.

Once the moratorium period ends, customers can either pay the accumulated six months of instalments together with the seventh month instalment or for those opting to take up the offer will see interest charged on the moratorium period.

According to a news report by The Star, interest rates are dependent on the contractual rate and will be charged based on the amount of delayed instalments that are outstanding until the amount is fully paid by the end of the extended six-month period.

 

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