You are wrong.. let's take car finance for instance..

Your payment schedule and interest is already locked. I.e. the interest is a fixed amount. Even if you paid off earlier, you will still be charged the same amount of interest as somebody who settled your car loan at the end of tenure.


So your theory of accrued interest during moratorium is impossible for car loans at least..

This post has been edited by Liamness: Mar 25 2020, 12:01 AM

From the last bullet point, the answer seems a firm no.. which is hugely important because some banks will record this as a negative. But if you show this letter to that bank, maybe they will reverse their decision to record this on our credit score.

This post has been edited by Liamness: Mar 25 2020, 12:04 AM

The rule right now is only those who lost their jobs, took unpaid leave, got infected, etc. Can claim suspension of loans..

You need to submit documents of evidence to the banks too.. i.e. bank statement, letter from employer, etc..

I think that what it means by automatic. But we dont clearly know enough until banks officially come out and make their announcements.. probably tomorrow.

Everything is a competition with these banks btw. Let's see who offers their customers real good packages.

Right on cue la..

Told you the banks will do everything in their powers to help people that have debt.

Debt is the most powerful tool in the world.

Also, this move is just as bad for savers & bond holders as the fed/bnm printing unlimited money to bail out debters like myself. Haha..

That's the next step btw. Banks printing cash in overdrive.. negative interest rates ftw.

Sigh.. A rebate is a rebate.

That is totally different from saying that the hire purchase interest will increase or reduce due to the suspension of loan payments..

You cant suddenly accrue more intetest on your car loan. It's not possible when your payment schedule and interest is fixed from start to finish.. now, at the end of the tenure, the bank may give you a discount for early settlement or a penalty for being late. But again, that is totally different from scenario like this where you are lawfully allowed to suspend your loan for 6 months. Your payment schedule and interest is still fixed.. the only thing that has changed is the end date. That's all..

And your example of accrued interest still doesnt work for car or even personal loans where the interest isn't based on days but rather on your payment schedule. I.e. 60 monthly payments of X amount until the end of Y date.. the interest has already been precalculated and built in..

Hence, the banks cannot charge you interest whilst your loan ia being suspended. It's pretty clear to me on this rule. And my example of how would you charge interest on predetermined or fixed loans such as hire purchase is one of the compelling reasons why the banks won't charge interest on any loan suspension. Including your house loan. They have got to be fair and apply all equal rules across the board.. so if they can't do it for one type of loan, means they should be consisrent and not apply additional interest across the board..

At least that's my logic to this.

This post has been edited by Liamness: Mar 25 2020, 01:14 AM

Of course interest will continue to acrue.. the question is, whether that is ADDITIONAL interest ontop of the interest being accrued as usual.. for somebody like you, who teaches English.. im appalled at the level of your comprehensive skills..

Maybe you should call your bank up. Because that is what I did and was informed that there will not be any additional interest charged for this 6 months..

In anyways, im waiting for the bank letter before I make my move.

So nowhere in there did it say Additional interest will be charged.. accrued interest is VERY different from ADDITIONAL interest..

For house outstanding balance yes, you will get hit because you are not reducing the amount. Which is fair.

But for all other loans, it doesnt matter if you pay in the next 6 months or not because they are fixed interest calculated from the start of the loan and doesn't consider the outstanding amount.. for all other loans, it is wise decision to delay repayment.

Heck.. can even say it is wise decision to delay housing loan repayments based on the fact that house loans have the lowest interest out of any type of secured loan.. you can use your cash to invest and out earn that interest.