Malaysians can now apply to banks for a six-month debt relief scheme, which will allow them to resume paying full payments only in 2022. Borrowers (individuals, microenterprises, and SMEs) can apply without submitting supporting documents during the six-month moratorium.
There are no longer any restrictions and conditions, such as income reduction or loss, and no prior background checks to see whether you've lost your work.
It's worth noting, though, that qualified borrowers can only select between a six-month loan repayment moratorium or a 50% decrease in their loan instalments for the next six months.
But what do you need to know before determining whether or not to take advantage of the opportunity? Can you spend it on funding your needs or wants? Continue reading to learn more.
Suppose you're having financial troubles right now or expect to have trouble paying your bank debts in the coming months.
In that case, the Pemulih
economic package's six-month loan relief may give some temporary and near-instant financial relief. It's entirely up to you whether you utilize it to meet your needs or wants.
Aside from the fact that this program is only relevant to auto, personal, home
, and business loans, there are a few other things to keep in mind:
- This repayment assistance option is only available for loans accepted before July 1, 2021.
- When applying for a loan moratorium, you must not have missed 90 days of payments or be in the process of bankruptcy or winding up action.
- Those presently enrolled in a repayment assistance program adhering to that financial payback plan will be allowed to participate in the PEMULIH loan moratorium.
- Individuals and small business debtors who have missed more than 90 days of payments can contact the Credit Counselling and Debt Management Agency (AKPK
) for a customized repayment plan and free financial counselling.
- If you have credit card debt, you cannot apply for this plan but convert your debt to a term loan.
What if I'm Qualified?
If you qualify for the six-month loan moratorium or six-month halved monthly instalments, keep in mind that interest (or simple interest) will continue to accrue and be charged, and your loan duration or payback time will be prolonged.
Bank Negara Malaysia
has previously said that banks would not impose compounding interest (interest on interest) or any penalty interest during the six months.
Simple interest is charged on the loan's principal amount plus any interest that would have been payable, whereas compound interest is levied on the loan's main amount only.
How to Request a Moratorium
Individuals and companies are not required to prove an income decrease or job loss when asking for the moratorium.
According to Bank Negara Malaysia
, individuals and company owners should visit their banks' websites for details on applying for the six-month moratorium through the internet, phone, or email.
Individuals are urged to enter their personal and loan information, pick the needed repayment assistance, and carefully read the terms and conditions.
Individual applications should be handled within 14 working days for SMEs and microenterprises). BNM can be contacted with complaints or any other difficulties that arise throughout the application process.
In a Nutshell
To assist borrowers in making an informed decision, certain banks stated that the six-month moratorium and six-month halved payment options for a property loan
or personal loan would not result in the loan tenure being extended, instead of requiring borrowers to pay a lump sum or a higher amount at the end of the loan's tenure to settle the entire loan.
Borrowers will obtain short-term relief regardless of which choice they choose for the six months, but they will be paying extra money back to the banks in the form of interest for the loan.
Borrowers who cannot pay the final sum due at the end of the loan should contact the bank as soon as possible to discuss payment options.