NEW: All Banks to charge interest on paused Hire Purchase loan payments in 6-months moratorium – pay it over the rest of tenure

Please refer to both English and Bahasa Melayu version.

There are two ways to go about it, according to the Association of Banks in Malaysia (ABM). One is when the half year moratorium ends, you pay the accumulated six months of instalments together with the seventh month instalment. Choose to do this and no extra interest will be charged, although we can imagine that not many will be able to cough out the big lump sum.

The second option – if you choose to take the moratorium offer (remember, you don’t have to) – will see the interest charged on that six-month pause spread out throughout the loan tenure. So you’ll have to pay slightly more than your usual monthly instalment from October 2020 onwards (more on this later). The loan tenure will also be extended for six months, six months because that’s how long “time was paused” for you.

Credit. Paultan

Photo. Bank Negara Malaysia