Refer to this attachment, very clear already.

Hire purchase, no need worry about interest and accrued interest. So just opt in don't reject. You pay same instalment 6 month later and loan extended 6 month

Mortgage, interest will be calculated on daily basis, Yes, with interest on interest. The amount will not be small.. So this one if your monthly repayment only paying less than 40% of the principal, better opt out if you can. Can rack up minimum 6k of interest in 6 month assuming the mortgage balance is above 250k.

After 6 month, there are 2 possibility, either bank allowed you to pay same instalment and extend the repayment period beyond 6 month, and the repayment backtrack to 6 months ago before the moratorium where the payment will allocated more to paid off interest than principle or bank increase the monthly instalment amount to cover for the 6 month accrued interest and repayment structure still backtrack to 6 month ago before moratorium where % paid to interest portion is higher than to principles balance.

Based on Summary on loan info, it look like the latter, instalment amount increases to cover new Balance.


Either way is not good.

BTW, above attachment sources is not from bnm but from uni suite, and the official letter from bnm clearly stated the acrued interest will be calculated and total balance will be adjusted and it look like for all loan not only limited to mortgage. So will need to verify the above source where they get the summary and most importantly which official bnm communication says no interest for hire-purchase as I can't find any online.


This post has been edited by wanted111who: Mar 26 2020, 06:15 AM


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Got bnm source that said hire purchase no additional interest?

With latest info I got, bank will extend your repayment by another 6 month and your monthly instalment will increase to cover the interest. 6k extended to few years e.g 30 years is just 30 ringgit extra per month. But it's still extra for the next 30 years. Better opt out if you can help it.

Both, cause payment freeze for 6 month (no pay 6 month) so extend it for 6 month make sense. If we paying same amount, then we paying back the original amount without any additional interest, which bank will still charge during the 6 month period, above example is 6k, so +6k will be added to the current loan balance and a new loan balance will be generated with the remaining repayment period which should be the same from Apr 1. We will see increase of monthly repayment.

Unless if bank decided not to charge additional interest.. HSBC originally said will not charge additional interest before bnm announcement (the bank offer as goodwill) but they change their policies after bnm announcement and all will follow bnm guidelines superceded what they come up with before the announcement.