While the government has said it will engage banks on the request by the public to extend the six-month moratorium on loans and financing repayments, any decision to continue the deferment period will have to be made individually by the banks, Bernama reports.
Analysts believe that banks will adopt a targeted approach to a moratorium extension, much like that suggested earlier this week by finance minister Tengku Datuk Seri Zafrul Abdul Aziz, who said that an extension could be looked at by banks on a case-to-case basis.
According to Affin Hwang Capital Research analyst Loong Chee Wei, those who are affected by the pandemic to the point of losing their job should be given a moratorium extension, but it would not be a blanket order. “Some are still facing hardship through this time, hence the moratorium given should be targeted,” he said.
In a response to the matter, Malayan Banking said it will not be extending its loan moratorium period past September. According to its group president and CEO Datuk Abdul Farid Alias, the present six-month period from April 1 to September 30 was “good enough” for the banking sector and the public in general, reports the New Straits Times.
Asked by reporters as to whether the Maybank was going to extend the moratorium, he said “the answer is ‘No’ because the six-month period is good enough for us to come out with a plan.” He said the whole idea of the moratorium was to give the public some breathing space, because the impact of Covid-19 was something that everyone had never experienced.
“So none of us know how long and deep the impact will be. So we need to digest, need time to talk to customers to come out with plan in order to help them repackage their facility and come out from the moratorium in a strong position,” he explained.
Meanwhile, AmBank says it is looking at extending the loan moratorium, but not in a blanket manner, The Edge reports. According to AmBank CEO Datuk Sulaiman Mohd Tahir, any extension will only be for targeted segments.
“This is something we want to look at particularly. We have set a criteria in terms of people who are in need and the approach is more towards requests by the customers,” he said.
“We should look at certain segments and certain people that require it. I’m sure that the banks are in the position to help out those that are really affected. But, it is not wise to go for a blanket moratorium, because the situation back then, during the MCO, was quite dire,” he said.
He added that the banking group has already been taking a targeted approach even before the Covid-19 pandemic, and is looking to continue the practice, going forward. “If customers [have] issues with regard to repayment, come and sit down and look into how we can (deal with it),” he said.
Under the Prihatin Rakyat Economic Stimulus Package (Prihatin, Bank Negara Malaysia (BNM) had on March 25 proposed measures to assist individuals, small and medium enterprises (SME) and corporates affected by Covid-19, in which an automatic moratorium on all loan repayments for six months was announced.
Those with hire purchase car loans or fixed-rate Islamic financing will enjoy a six-month relief, with only the duration of the tenure shifted by an additional six months. There is no change to instalment payments after the moratorium period ends, nor will there be any additional interest charged during the period.
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Well, the banks did their best by giving extension of 6 months. If abang abang, kakak kakak taiko taiko, etc having no financial means to service car loan……then better sell of the car and look for cheaper alternative. I know this is hard decision.
Livelihood comes first, gaya and brand di ketepikan seketika.
Bisnes kuat for us the car repossesors incoming.
My tow truck is ready for those cars bought during CNY. Huat ah to my business!
My wifey saving up to buy another birkin, and me the Ysuku Y15ZR V3. Konvoi jom!
Banks are a business entity after all. Profits must be made. At least if the banks could be transparent and make their stand clearly, as Maybank did, within the remaining 3 months we still have time to put our affairs in order and prepare to restart payment come Nov 1.
Kudos to our people-friendly government for giving us this generous breathing space during such troubled times. if it were the old government, jangan haraplah Harapan akan jaga kita semua. Kroni saja dia tau jaga.
AKPK will need to start beefing up their workforce as more and more people will visit them. those accrued interest will be a burden to Malaysians. People will be forced to take up 2nd job and more illegal food stall will be mushrooming, increase in crime rates such as snatch thief, stealing, robbery and scam. Grab will be facing a whole lot of applications for their Grab food delivery and grab drivers. students that are after SPM will be unable to go to colleges and university as their parents are unable to pay the roof over their head and these kids will need to go out and work. as parents busy to look for more income, unattended kids will start to rempit on highways.
There is no accrued interest during moratorium.
https://paultan.org/2020/03/27/six-month-car-loan-deferment-heres-what-to-know/
that’s for cars. for houses, not all banks are not charging accrued interest.
Live within your means. Only ourselves are accountable to our own finances. Helps from gov and banks are definitely a breather but that doesn’t mean , we get a get-a-way jail card.
the 6 months moratorium is the time that we should relook into our finances and make necessary changes to survive the hardship in months to come.