JUST IN: Ministry of Finance Declares Hire Purchase Loan Moratoriums Now Interest & Compound Free

In the latest update from the Ministry of Finance, it has been confirmed that the moratorium being offered by all banks in Malaysia to hire-purchase loan customers will not affect the total amount of the loan paid, regardless of whether you have applied for a conventional or Syariah loan.

This is due to the fact that there will be no compound and the loan itself will not accrue interest, should customers decide to take up the six-month long moratorium that was offered to help relieve financial strain on Malaysians.

The decision comes after the Association of Banks Malaysia had previously declared that those who take up the moratorium offer would either have to pay off the six-months worth of deferred installments in one go by October without interest, or to continue their repayments on a monthly basis after October, with a further extension of six months to their original loan maturity date.

The second option will incur a change in interest rate depending on the contractual rate, and was to be charged based upon the number of remaining outstanding repayments until they are fully paid off by the end of the six-month extension.

For more information on the matter, finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has advised all Malaysians to contact their respective banks for clarification.

What do you guys think of this new development?

Also read: M’sian Finance Minister Urges Banks To Offer Interest-Free Moratorium