The COVID-19 pandemic has certainly affected our health. But on top of that, it affects the core thing which is more severe that health which is our ‘pocket’, the economic.
Which affecting our ‘pocket’ in a way affects our health whereby our ‘pocket’ maintains our health in terms of the food we eat.
For some other individuals who have no commitments, they might have a lesser burden compared to those people who have commitments such as monthly insurance payment, monthly phone bill, but most importantly monthly housing loan and monthly vehicle loans because if normally if you defaulted in paying these 2 monthly loan the Bank would most probably auction away your house or to take away the car from you.
Due to the pandemic, you may communicate with your bank to have a moratorium on your loans to the bank subject to their terms and condition.
So, what’s a moratorium? A moratorium is a legal authorization to the debtors to postpone a payment. For now, to ensure that there is enough cash flow to sustain the basic needs, it might be a better option to consider a moratorium instead of defaulting payment and get sued by the Bank.
Today we are going to discuss about the recent announcement by the Association of Banks in Malaysia (ABM) and how does it affect you and your monthly hire purchase commitment with regards to moratorium.
This is to make sure that the banking institutions takes appropriate steps to ensure that borrowers or customers are aware of the process and the changes to terms of their agreement.
The ABM confirmed that its member banks will be communicating to their hire purchase (HP) customer to notify them of the procedures needed to effect the moratorium on their loan.
For those HP customers who have yet to notified their banks of their banks to continue in paying their existing monthly installments (no request for moratorium), do not have to take any further action to restate their decision.
For those HP customers who have already notified their bank for their moratorium application might have the option to pay the accumulated six months’ deferred installments together with their October installment without being charged any additional interest.
They also have the option to continue repayment of these instalments through an extension of six months. However, interest rate will be charged on the amount differed installment that remains outstanding until the installments are fully repaid.
Do take note that, the ABM’s member banks will not impose any additional interest charges or late payment fees for installment that remain outstanding for April and May 2020 by HP customer who had differed their monthly installment payments, provided that payments for April, May and June 2020 are made before 30th June 2020.
For those HP customers who wish to take up the moratorium are required to formally confirm upon the receipt of communications from their respective bank.
However, please take note that all of these is subject to change by the Banks.
