Yes, you are correct in that interest will be charged on your unpaid principal sum even after the 6 months period is over. As you have a higher unpaid principal sum, from Month#7, the interest will be higher too.

There will be difference.
1. If your bank compounds the interest, you will lose out ( and pay more)on the compounded interest.
2. If you pay monthly, your interest will be lesser for months 2,3,4,5,6 and you pay more on the principal sum.

Good morning Toos99

Depends.

When you make a monthly installment, interest portion will be deducted first, before using the balance to knock off your principal amount.

If during this moratorium, you keep paying your instalment monthly, there is no difference.

However if you pay the 6 months instalment in advance, after deducting your interest amount for one month, all the other amount will be used to knock off your principal amount.

Eg. If your instalment of RM1000 consist of RM700 interest and RM300 principal amount.
If you pay monthly, your principal will be lesser by RM300 every month. But if you pay RM6,000 in advance on 31st March (example), than RM700 will be deducted for interest and RM5,300 will knock off your principal amount. Hope this helps you to answer your question.

Hi Toos99,

Understand your question perfectly well. I have also checked the BNM guidelines for clarity.

What the moratorium provides is suspension of instalment payment. What is not suspended is accrual of monthly interest on the outstanding principal amount by the banks.

The BNM guidelines is silent when will the accrued interest will be added to your principal amount; whether it's at the end of each month or the total interest amount is only added at the end of 6th month. This can only be addressed by your bank. Good to check with them.  But if I were to make a guess, likely the bank will add interest to you principal sum on a monthly basis instead of a lump sum  at the end of the 6 month period.

If my guess is correct, my  example still applies. But if the interest in lumped at the end of the 6th month, than you will benefit if you pay monthly to reduce the principal sum. Keep us informed if you get a response from the bank, together we benefit from your knowledge.

There will be interest charged, but going by BNM guidelines no compounded interest (interest on interest).