As things have been going a bit haywire financially, especially during the COVID-19 pandemic, we don’t know what to do with 2020 and 2021. It’s not cute.

To help ease the financial impact of the rakyat, Malaysia’s government decided that in March 2020, it would provide monthly financial assistance of RM600 to employees on unpaid leave and allow them to withdraw from EPF. .

The government then extended the moratorium period to a few selected groups like people who have lost their job but are still searching for one. They offer a flexible repayment option – each case will be considered.

Beginning July 7, 2021, individual borrowers will be able to enjoy the 6 month moratorium. The moratorium applies to all borrowers regardless of income, including those who fall within the M40 or T20 income categories. All you have to do is apply. Individual borrowers will be approved in 5 days and SMEs borrowers in 15 days. You only need to sign an agreement if necessary. You can find out more.

All micro-entrepreneurs can also apply for the moratorium, provided that their loan amount is less than RM150,000. SME can also apply, but the bank will need to verify before approval.

P/s If you guys are unable or unwilling to apply for the moratorium please contact BNMTELELINK .

Please understand the meaning of BNM’s Loan Repayment Moatorium and the consequences.

1. It’s back to be automatic approval!

Do not have to write one before this… any individual or SMEs with conventional loans, Islamic financing repayment obligations, and who meet the following criteria will automatically be eligible for loan deferment.

There was no default on loan payments for more than 90 calendar days beginning 1 July 2021. You are advised to contact your banks to get assistance.
In Malaysian Ringgit.

  • If you are one of these corporate customers/borrowers, you can request a moratorium from your banks on loan/financing payments.
  • Those who do not wish to participate in the automatic delay package and want to continue making timely and complete repayments of their loan/finance can simply make the payment.

However, this moratorium means that you will need to apply for your bank starting 7 July 2021. For those with loans from multiple banks, there is no need to worry. You can simply drop by the appropriate “one-stop” center to find out what to do.

  • Individuals: Agensi Kaunseling dan Pengurusan Kredit (AKPK)
  • SMEs:Small Debt Resolution Scheme ( SD

2. Deferring your loan will result in higher interest.

Even though banks can’t levy late penalty fees on deferred amounts, interest is still allowed. Because banks still need money maaa. This is why you need to be aware of it. It only means you will spend more money in the future.

Here’s a breakdown:

Conventional loans Interest will continue to be charged on any outstanding balance. It includes both the principal and interest portion (i.e. During the moratorium, it is compounded.
Islamic financing The profit on the principal amount will continue to accrue, but it will not be compounded according to Shariah principles.
Please note that interest/profit on deferred loan/finance repayments will continue to accrue. The accumulated repayment amount will be added to the remaining loan/finance amount.

BNM also suggested that you discuss the best workout plans to repay principal and interest accrued during that period. There will be an increase or lengthening of the tenure, which could lead to six-month extensions.

3. This does not apply to your credit card balance.

Your card issuer will automatically convert it into a term mortgage of no more than 3 year at an interest rate of 13%/financing. This is only available to cardholders who cannot meet the minimum monthly repayments consecutively for the past 3 months regardless of their income.

You can still use your credit card until the remaining credit limit, after taking into consideration the amount converted into a term loan/finance. Credit card limits are affected by the outstanding balance that was converted to a term loan/financing.

The minimum monthly credit card repayment amount will also include the monthly term loan/financing installments.

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