The Bank has released a set of Frequently Asked Questions to address public queries regarding the Loan/Financing Deferment Measure.
General FAQ / Terms & Conditions
- For customers who are not in arrears exceeding 90 days as at 1 April 2020.
- The Moratorium is the deferment of instalment servicing for up to 6 months with or without** incurring late payment charges.
- Interest/Profit will continue to accrue on the outstanding balance and will not be compounded during the Moratorium period. ***
- Customers who do not wish to take up the Moratorium may simply continue to pay their regular instalments and apply with the Bank
Let’s do a simple calculation and explanation
**Some of the Banks have waived the late payment charges. Some will impose the late payment charges which the amount is based on the monthly instalment amount and not on the Balance Loan Sum (Facility). Please check the FAQ on the respective Banks.
*** The Interest/Profit here is referring to the monthly instalment interest (the monthly instalment that you pay is inclusive for Principal + Interest). It simply means the said interest (on the monthly instalment portion) will accrue and will be charged to your loan balance.
For example, if your monthly instalment is RM2,500.00 with a balance loan sum of RM500,000.00, when you pay RM2,500.00 to the Bank, besides paying the Principal, you have to pay for the monthly interest. The sum of RM1,875.00 will be paid as Interest and RM658.00 will be paid as Principal. However, since now you do not serve the normal monthly instalment, the RM1,875.00 will still continue charged by the bank but on accrue basis, RM1,875.00 x 6 (actually the interest will be changed on every month based on balance loan sum and number of days and types of the loan but slightly difference of RM2-RM5) which will be added to your RM500,000.00 and your new balance will be RM511,250.00.
If the bank is charging late payment interest, then the late payment interest on the interest is around RM7-RM10 per month. Therefore, your new monthly instalment might be RM2,510.00 (to be given by the Bank in notice). In conclusion, it is actually extended your loan tenure and the bank accrue the 6 months instalment interest to your balance instead of you pay it on your own now.
We recommend and suggest you check with your consultant or bank to get the accurate calculation and information for you to make a decision.
The lists of 21 Banks with FAQ
Bank Simpanan Nasional (BSN)
http://citibank.com.my/index.htm (Only a pop-up window with short notes)
Hong Leong Bank
Kuwai Finance House
Malaysia Building Society Berhad (MBSB)
Standard Charted Bank
All the links here are copied from the respective Banks.
Kindly check with your Bank if you have any questions. All the informations shared here are for your reference purpose.