For hire purchase where interest already built in to the repayments. Definitely interest won't be capitalized. However, if the banks refuse to take this loss, the banks might invoke some clause in that maze of a hire purchase agreement and argue their way out. It is up to the consumer to take this to court.

For home loans, the bnm letter leaves alot of room for banks to wiggle out of not suspending interest calculation. The fact that it's not specifically stated in the bnm letter that banks cannot at a later date capitalise any interest accrued is enough for the banks to do it.

Anyways it's a win either way. 6 months of freed up cash flow is a win for the economy.