KUALA LUMPUR, 6 May 2020 – Banks have now agreed to waive the additional interest or profit charges imposed on installments for hire-purchase loans for the six-month moratorium announced by the government.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry has reached an agreement with the banking industry on this matter, following the government’s call to the industry to waive the additional charges.
“It has been agreed that the amount of monthly instalment payments will not change for hire-purchase (conventional and shariah-compliant) borrowers throughout the financing period.
“This also means there will be no additional charges imposed during the moratorium (deferment) period,” Zafrul said in a statement today.
He said borrowers are therefore required to resume paying their instalments as usual, based on the terms of agreements with their respective banks including with an extension of six months in the repayment period, if they chose to take up the moratorium.
“Further information can be obtained from the respective banks.
“The government hopes this decision will be able to ease the people’s burden during these challenging period,” Zafrul added.
The minister’s announcement is expected to put a stop to the heated debates that started over the weekend, on whether banks should impose additional charges for the six-month period from April 1 to Sept 30.
Read more: How SMEs Can Survive the COVID-19 Pandemic