News

No Change From Earlier Decision On Hire-Purchase Loan Moratorium, Says BNM

KUALA LUMPUR, May 1 — From day one, Bank Negara Malaysia (BNM) has clarified that interest/profit will accrue on all products during the loan repayment moratorium period; hence there is no such thing as making a U-turn or revocation on the earlier decision, its officials said today.

In a media briefing on moratorium issue here, the officials said they regretted the confusion on procedures for the six-month loan moratorium and were trying their best to clear it up.

“We sincerely regret the confusion. We try to explain; there is no inconsistency on the explanation to public. There was great excitement when the moratorium was first announced. We took the pains even then to point out to borrowers that they need to be aware that interest will accrue on this deferred payment.

“When things get back to normal, the bank needs to advise borrowers on how the deferred payment will be treated. Make sure they (the borrowers) pay attention before taking the moratorium as there is a cost (to it),” said BNM deputy governor Jessica Chew Cheng Lian.

In its announcement on March 25, BNM had already advised borrowers that interest/profit would continue to accrue on deferred payments and they should consider this in deciding whether they wished to take up the moratorium.

Chew said customers could contact their banks directly regarding matters relating to the moratorium and for any financing applications under the stimulus package or Special Relief Facility as announced by BNM.

She added that the central bank would come up with several initiatives, including infographics, to help simplify the explanation.

Bank Negara, in a statement yesterday, stated that hire-purchase and fixed rate financing borrowers could expect to be notified via SMS, email or registered mail by their respective banking institutions.

It said those who wished to take up the moratorium under these financing products were now required to formally confirm this with their respective banks on receipt of communication from their banks for the moratorium from April 1 to Sept 30 this year.

Confusion that arose was due to misperception, which was to some extent caused by an illustration provided in its earlier version of frequently asked questions (FAQs) where certain assumptions and caveats were made.

— BERNAMA

nur

Recent Posts

Toshiba Turns 95 with a Giant Fridge, Big Vibes & A Spot in the Malaysia Book of Records

Who says anniversaries are just cake and candles? For Toshiba’s 95th Anniversary Dealer Convention, it… Read More

3 days ago

Resorts World Sentosa’s Singapore Oceanarium Introduces New Experiences As Ticket Sales Go Live

Resorts World Sentosa (RWS, 圣淘沙名胜世界) has announced that ticket sales have launched for Singapore Oceanarium… Read More

3 days ago

Barista Brews at Prices You Won’t Believe Exist

Think handcrafted coffee always comes with a hefty price tag? Think again. Across Malaysia, cafés… Read More

3 days ago

POCO Introduces POCO F7: Where Futuristic Design Meets Exceptional Power

POCO, a leading technology brand among young tech enthusiasts, today unveiled POCO F7, setting a… Read More

3 days ago

Proton Owners Hit the Road for Wellness: AG Autoworld x Herbal Farmer Flag Off First-Ever Fun Drive in Johor

What do you get when you mix wellness, good vibes, and 30 Proton cars? A… Read More

3 days ago

OMSMC Earns Spot in Newsweek’s Global Hospital Rating 2025

Oriental Melaka Straits Medical Centre (OMSMC) has been listed in Newsweek’s Global Hospital Rating 2025,… Read More

3 days ago

This website uses cookies.