KUALA LUMPUR, Malaysia (July 1): According to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, the six-month moratorium offered under the National People’s Well-Being and Economic Recovery Package (PEMULIH) is expected to save individual and commercial creditors up to RM80 billion. He explained that the moratorium was only meant to be a temporary measure as part of the NRP program.
It must be viewed in conjunction with everyone’s efforts to expedite the transition to the next phase of Movement Control under the NRP, he said.
“The sooner we switch phases, the sooner the various sectors can function, and the faster our economy will recover.”
“The sooner we can get our lives back, the sooner we can go out and earn a living,” he remarked today in the 59th National Inter-Agency Economic Stimulus Implementation and Coordination Unit (LAKSANA) report.
All individual borrowers, including B40, M40, T20, and micro-entrepreneurs, will be eligible for the six-month moratorium, which will be given without any limitations such as reduced income or job loss.
The facility is also available to affected small and medium business (SMB) owners, subject to bank examination and approval.
Tengku Zafrul stated that no documentation is required and that borrowers merely need to sign an agreement to change the loan terms.
“After its debut in March of last year, Malaysia has imposed a comprehensive lending moratorium for the second time.
“No other government in the world has provided a broad moratorium like this,” he added, adding that most countries only provide targeted and restricted loan assistance.
Banks would waive compounded interest and penalty penalties for borrowers who take advantage of the loan moratorium, according to the Finance Minister.
When the borrower begins making payments after six months, just accrued interest is levied.
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For individuals who pick the moratorium option, there are no penalty charges or records in the Central Credit Reference Information System (CCRIS).
“After the moratorium time is up, some want to repay at the original rate, while others want to pay a reduced amount and extend the payback period,” he explained.
Tengku Zafrul noted that borrowers who desire to prolong their loan repayment time beyond the originally agreed period will pay a higher interest rate, but this must be discussed with the bank.
The RM81.9 billion loan repayment moratorium imposed on banking institutions from April 1 to August 28, 2020 was worth it.
The commercial sector used RM28.6 billion of the total, while individual borrowers used RM53.3 billion./n
