For PBB, I dont get it.
It says you will pay more interest by deferring , simple interest charge without compounding.
If no compounding, then what do you mean "pay more interest"? Pay more interest than what exactly?




https://www.pbebank.com/Announcements.aspx?qid=2924#q2924

4. HOW WILL MY INTEREST/PROFIT CHARGES BE CALCULATED DURING THE DEFERMENT PERIOD?

For loans with Public Bank Berhad, i.e. conventional loans: You will pay more interest by deferring. Simple interest will continue to be charged on the outstanding balance without compounding during the moratorium period.

so why they say you will pay more interest by deferring?

Thanks Spazerock

Seems the PB announcement wording used changed again .... are they reading this forum?

What does it mean "You will pay interest by deferring" ?
if you opt out of this deferment, you will still pay interest ma.
We all know it's not interest free, The question people need to know is do you pay more or the same interest by deferring?
Banks really need a spreadsheet example. All these words are vague and can be interpreted in so many ways


4. HOW WILL MY INTEREST/PROFIT CHARGES BE CALCULATED DURING THE DEFERMENT PERIOD?

For loans with Public Bank Berhad, i.e. conventional loans: You will pay interest by deferring. However, there will be no compounding interest during this deferment period from 1 April 2020 to 30 September 2020. This means you will not be charged any interest on the interest that arises during the moratorium period.
For loans with Public Islamic Berhad, i.e. Islamic financing: You will NOT pay more profit charges by deferring. Profit will continue to accrue on the outstanding principal amount. Such profit however will not be compounded in line with Shariah principles.

adding the weblink
https://www.pbebank.com/Announcements.aspx