KUALA LUMPUR: Banking customers, including individuals and small and medium sized enterprises (SMEs) will be allowed to delay the repayment of their existing loans, including mortgages and hire-purchases, for a period of six months.

This is part of the central bank’s new measures to assist borrowers experiencing temporary financial constraints due to the Covid-19 outbreak.

In a letter to the heads of financial institutions today, Bank Negara said the automatic moratorium will be effective from April 1.

"Banking institutions should provide individuals and SME borrowers with adequate information on how the suspended loan/financing repayments/payments will be treated during the moratorium period," the central bank said.

The automatic moratorium is applicable to ringgit-denominated loans or financing that are not in arrears exceeding 90 days as at April 1, 2020.

The moratorium does not apply to credit card balances.

For outstanding credit card balances, Bank Negara said customers should be offered the option to convert the outstanding balances into term-loan of not more than three years.

"For corporate borrowers, banking institutions are strongly encouraged to facilitate requests for a moratorium," the letter stated.

sos:thebintang

This post has been edited by Dyson Jin: Mar 24 2020, 11:06 PM

Where does it say that proof is required ?

https://www.thestar.com.my/business/busines...-for-six-months

/k/ kuat tipu.

better follow official letter from BNM

AUTOMATIC

sacrifice the bank.

All other counters that are highly geared like construction, O&G, utilities all UUU BBB cause big part of their expenses are bank interest charges.

Go buy public bank

Not the first time there was a moratorium. There was one when malaysia had that big flood some years back. No bank collapsed.

I have asb loan too. How ar?

what is the procedure to continue paying?
what is the procedure to not continue paying? interest?
bank auto may not be the auto that the public thinks.
need to go to bank or not?
later everyone gather at the bank and spread virus.
hello bank, please give a better guideline

This post has been edited by Skylinestar: Mar 24 2020, 11:08 PM

from the MM link
BNM have tasked the banks to provide its customers with information on how the suspended loan/financing payments/repayments will be treated during the six months’ period and the options available for them to resume payment once the period is over.

However, a footnote at the letter pointed out that there will still be an accrual of interest.



so where got free lunch
cos you still need pay the accrual Interest ya .

Nowadays banks are very well capitalised and have a lot of capital conservation buffer, thanks to the lesson learned from global financial crisis.

In layman terms, it means that over the years BNM have forced banks to build up huge cash reserves which they cannot touch in normal times. But this is a crisis, so BNM now allow them to use these reserves.

What is the meaning of accrual interest?

Just wait tomorrow. I'm sure they will announce it in proper way

Chill la. The BNM circular just came out few hours ago.

Banks also received it few hours ago only, how they formulate all these procedures? Give them some time.

“However, a footnote at the letter pointed out that there will still be an accrual of interest.”

Ktards so naive self-declare no need pay interest .... lol

Some more self- declare bank stocks go down and construction stocks go up cos no need pay interest .... so naive...

Nothing is free in this world ....read properly

Bagi can la. Who attacked who .. anyway my previous post mentioned , I quoted from the surface since there was no mentioned of accrued interest.. understand?

This is for housing loan?
No such interest for car loan right?

Thanks

Accrual of interest simply mean the charging of interest.

Basically if you take advantage of the moratorium, it means you don't have to pay the bank for 6 months. But interest will still continue to be charged, and you will end up paying slightly more to the bank.

Interest will not be waived... means gg after 6 months