Bank Negara Malaysia( BNM) has ordered all banks to grant an automatic six-month moratorium( deferment) of all lend/ financing refunds- including automobile loan( hire acquisition agreements)- from April 1, 2020, with the exception of credit card balances. What this essentially signifies is that you do not have to pay your home loan and automobile loan monthly instalments for half a year starting April, and no action going to take against you.
While BNM’s official announcement hints borrowers will have to apply for the benefit, separate the documentation and a list of FAQs issued by BNM to banking and financing institutions stated that the moratorium would be applied automatically to people “likely to be most affected by Covid-19.”
This offer is applicable to performing loans, denominated in Malaysian ringgit, that have not been able to been in arrears( owing) for more than 90 periods as at April 1. Additionally, the rights and interests/ gain is willing to continue to accrue on lend/ financing repayments who the hell is deferred, and borrowers will need to honour the deferred payments in the future. To make it clear, this isn’t a total waiver of payment, but a deferment.
As such, banking institutions is necessary to ensure that borrowers are sufficiently civilized on the options available to them to resume their planned refunds once the deferment date aims. This includes coming up with suitable repayment plans that take into account the principal amount and interest accrued during the moratorium period, as well as the repayment capacity of borrowers. Those that do not wish or need to avail of these flexibles can choose to continue with their current repayment structures.
In the case of outstanding credit card equilibriums, banking institutions have been instructed to offer customers the option to convert outstanding amounts into a term loan with a tenure of up to three years and an effective interest rate of not more than 13% per annum.
For individuals that have been unable to meet the minimum monthly refund of their credit cards equilibriums for the past three consecutive months, banking institutions can automatically convert those balances into term loans- this will be observed from April 1 until December 31, 2020.
The move is meant to ease the cash flow of individuals and SMEs that are likely to be affected financially by the Covid-1 9 pandemic. According to the Malaysian central bank, “banking institutions are well-positioned to do so, given the large fiscal buffers that have been built up over the years.” As at intention January 2020, excess capital buffers above the minimum regulatory requirement stand at RM119. 7 billion.
Recently, several banks have offered its clients the chance to defer loan refunds in the interests of the health crisis( with their own terms and conditions ), but the new ruling issued by BNM technically supplants those initiatives. The full roster of FAQs related to the matter is posted below 😛 TAGEND
Read more: paultan.org