Loan moratorium not interest free, but banks told to waive compounded interest, penalties – Tengku Zafrul

Loan moratorium not interest free, but banks told to waive compounded interest, penalties – Tengku Zafrul

The six-month loan repayment moratorium under the RM150 billion Pemulih package announced yesterday by prime minister Tan Sri Muhyiddin Yassin is meant to help borrowers by deferring repayments to a later date, but would not be interest free, according to finance minister Tengku Datuk Seri Zafrul Abdul Aziz.

Speaking to reporters during a virtual briefing earlier today, he said the current moratorium is the same as before, and that the method of repayment – including that of interest charges – will differ in each case and would have to be determined “between the borrowers and banks,” The Star reports.

UPDATE: Story has been updated with the mention that banks have been told to waive compounded interest and late penalty charges.

However, he later added that banks would waive compounded interest and penalty charges for borrowers who take up the moratorium, according to the New Straits Times. He said that the important thing was that the government had managed to get the banks to give the moratorium to everyone, regardless whether they are affected or not. “That moratorium hopefully will help the cashflow of the rakyat,” he added.

Loan moratorium not interest free, but banks told to waive compounded interest, penalties – Tengku Zafrul

Unlike the moratorium approved in the first MCO early last year, the latest moratorium is for everyone, from the B40 segment to the country’s top 20% earners (T20) as well as micro entrepreneurs. There will be no need for proof of pay reduction or job loss, and no documents are required.

Applications will open on July 7, and borrowers just need to apply with the bank and sign the amended loan agreement form. Approval will be automatic for individual borrowers. Small and medium enterprises (SMEs) can also apply, but for companies, it’s subject to review by the banks (not automatic).

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.



  • Danny Chan on Jun 29, 2021 at 5:13 pm

    So it means you die now or you die later. No help at all.

    Like or Dislike: Thumb up 28 Thumb down 11
    • Copy Paste on Jun 29, 2021 at 6:00 pm

      Copy paste: “I hope that this moratorium initiative will help individual borrowers and SMEs in managing their cashflow during this challenging period. However, I would like to advice borrowers to use this offer wisely and if you’re not in desperate need, do not add to your financial commitments,” the PM added”

      Like or Dislike: Thumb up 20 Thumb down 6
    • Civic Turbo 2018 on Jun 29, 2021 at 6:01 pm

      Slogan ada gaya “loan bebas 6 bulan” – interest tambahan 1ribu MOO-MOO xde subsidi punya

      Like or Dislike: Thumb up 4 Thumb down 3
    • History Bender on Jun 29, 2021 at 6:15 pm

      If you die now you got no chance to win.
      If you die later, you can still fight another day.
      As Sun Tzu said “He will win who knows when to fight and when not to fight.”

      As more time given, opportunity arise and as Sun Tzu said “Opportunities multiply as they are seized”

      Most importantly those who rack up debts should take a look at themselves if their lifestyle is unsustainable, as Sun Tzu said “know yourself and you will win all battles” and “If you know neither the enemy nor yourself, you will succumb in every battle”.

      If they had been prepared they should not be worried, as Sun Tzu said “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win”.

      Like or Dislike: Thumb up 40 Thumb down 3
    • cold hard fact on Jun 29, 2021 at 10:43 pm

      Dont worry brother, we will all die when the time comes be it with or without help.

      Like or Dislike: Thumb up 7 Thumb down 0
    • george on Jun 30, 2021 at 8:52 am

      Sound more like the current gov, die now or later still die in the next PRU.

      Like or Dislike: Thumb up 5 Thumb down 8
      • Sick & Tired on Jun 30, 2021 at 4:02 pm

        Thats what PH troopers wishing but looking at things and sentiments on the ground, this is far from it.

        Like or Dislike: Thumb up 6 Thumb down 3
  • but the last Moratorium earlier last year (March 2020) also for everyone what regardless B40 M40 or T20

    Like or Dislike: Thumb up 12 Thumb down 1
  • dong gor on Jun 29, 2021 at 5:31 pm

    Oppps, thought it was interest free at least for the car loan just like the first moratorium. The help is getting ‘cheaper’ it seems.

    Like or Dislike: Thumb up 9 Thumb down 8
    • Last full MCO people were unprepared hence interest free helps. This round people should have ample time to prepare for this to happen and if they weren’t ready, they only have themselves to blame.

      I will repeat this: Take the PM’s advice, if you can continue repayment then do it. If you cannot afford it, your worries on extra interest should be the least of your concerns.

      Like or Dislike: Thumb up 20 Thumb down 20
      • DonkeyKong on Jun 29, 2021 at 8:42 pm

        Bro it’s not about whether or not there’s ample time to prepare. Just talk to business owners and see. Their buffer and reserves have already been depleted by successive MCOs and now they’re running on gas fumes. I know a furniture exporter who has to shoulder a few million ringgit in losses because furniture manufacturing businesses have to be shut down and his foreign clients have canceled their orders. How to prepare for this? Even existing inventory can’t be moved out of their warehouse to be sent to the port.

        Like or Dislike: Thumb up 12 Thumb down 2
        • Economists & financial experts have been talking about disruptive businesses and business practices since Industrial4.0 and Covid is huge catalyst for change. Businesses that refused to change will die even without Covid only that it merely accelerating things.

          Take for instance the business i work for, previously have hard physical presence but after MCO1.0 we have turn around 180 to depend on online networks and decentralisation of physical processes.

          We came out of MCO1.0 barely surviving. We changed and went into MCO2.0 readied, we tested and honed our adaptation. By the time MCO3.0 arrived we were fully prepared, and FMCO didn’t affect us too much as we adapt our approach even further.

          Change is constant, only those who refuse to change will sit to complain and eventually dies. Which shall it be bro?

          Like or Dislike: Thumb up 9 Thumb down 1
          • Feel free to download a chair from the internet.

            Like or Dislike: Thumb up 1 Thumb down 0
    • ding dong on Jun 29, 2021 at 11:04 pm

      What do u mean by interest free?
      HP loan/finance works on different formula compared to mortgage. So far i havent seen an HP agreement which calculate interest/profit based on daily rest calculation.

      If penalty free then you are right, bank do not charge penalty for the delayed payment.

      Like or Dislike: Thumb up 8 Thumb down 0
  • Tipah Tertipu Lagi on Jun 29, 2021 at 6:12 pm

    Not interest free, huh?

    Looks like bank bosses are expecting bigger profit, and bigger bonuses than year 2020.

    Like or Dislike: Thumb up 18 Thumb down 2
    • Dredd on Jun 29, 2021 at 10:25 pm

      If banks collapses your money in their account is worthless. Do you prefer that? Dredd agrees

      Like or Dislike: Thumb up 4 Thumb down 14
      • How they can collapse with 7billion profit last year, even with MCO through and through? They are just greedy.

        Like or Dislike: Thumb up 1 Thumb down 0
  • Not Toyota Fan on Jun 29, 2021 at 6:16 pm


    Like or Dislike: Thumb up 19 Thumb down 3
  • DonkeyKong on Jun 29, 2021 at 8:40 pm

    Another example of an eyewash for a lousy policy.

    Moratorium to help cashflow with guaranteed approval, no documents needed, doesn’t matter if you’re B40, M40 or T20 and whether or not you’ve lost your job..

    BUT, not automatic. Still have to manually apply.

    So they’re just showing us how inept they are, and how badly thought-out their policies are. This is what happens when you have a patchwork administration that has no cohesion, and with different factions serving different agendas.

    Like or Dislike: Thumb up 6 Thumb down 8
    • Bro. Not everyone needs the moratorium and since it will lead to higher interest later on, there are those who can still make payment, like me, prefers not to take the moratorium. Making it automatic meant doing people like me a disservice as we’re the ones have to do all that work JUST to opt out, WHY?!?!?!

      Back when they made EPF reduction automatic, it is people like me who wanted our contribution % to remain that have to slog in order to opt out while those who wanted/needed the help didn’t even need to raise a finger to submit an application. Why are we being punished then when those in need couldn’t be bothered to lift a finger to apply and here they about complaining… blah blah blah… why not automatic… blah blah blah… inept and badly thought out… blah blah blah.

      If there are any party that have a legitimate right to complain, it would be those of us that have to make a submission just to opt out of something. You guys got it good and you can’t even be bothered to raise a finger to apply?! Sheesshhh!

      Like or Dislike: Thumb up 14 Thumb down 0
    • Possible reason on Jun 30, 2021 at 11:05 am

      Why need to apply?
      Its for those whom does not want to ‘enjoy’ the ‘holiday’.

      Lets say a well to do person have a 500k housing loan and the ‘holiday’ is automatically approved. This person does not want the holiday as he can afford it. Since its automatic the system just paused his account for the holiday period and charged interest on his outstanding which is the same for those month (regular monthly payment will reduces outstanding amt which in turn reduces amount-RM of interest charged). Whatever payment made is considered as advance payment. Its not ideal for this person as he will ended up paying more (interest portion) when there is no need to.

      It has nothing to do with the gomen administration. Its the bank process. The first time round it was not done coz its a very quick decision/instruction. This time round banks learnt from previous experience.

      Like or Dislike: Thumb up 6 Thumb down 1
    • Don King on Jun 30, 2021 at 2:24 pm

      Not everyone wants mora Mr DK..hence you have to manually apply..

      Like or Dislike: Thumb up 6 Thumb down 0
  • Ben Yap on Jun 30, 2021 at 3:55 am

    When MCO, everyone wants Moratorium. When MCO is over, car sales went up. after buying their new cars and another lock down, then they start crying for moratorium again for fear being unable to repay their loans. That’s Malaysians way of living.

    Like or Dislike: Thumb up 18 Thumb down 3
  • george on Jun 30, 2021 at 7:57 am

    They were told, but will they listen?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Roger on Jun 30, 2021 at 8:21 am

    I thought last year 2020 they say will lost money, but they manage to make profit this year.
    Bank Untung. Rakyat 0.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Pak Cik bagi Nasihat on Jun 30, 2021 at 10:47 am

    You simply cant afford driving new car, if you depends on Moratorium. Simple as that.

    Just drive a secondhand car instead. You wont die driving it.

    Like or Dislike: Thumb up 4 Thumb down 1
    • u drive secondhand car balik kampung, your atuk, nenek & relative laugh u, and u will die of depression also

      Like or Dislike: Thumb up 2 Thumb down 8
      • Ehyeh Shaddai on Jul 03, 2021 at 2:36 am

        no senior people shall laugh at you, if they did they shall check-into ICU and later ended-up as earth fertilizer.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Tun F on Jun 30, 2021 at 3:40 pm

    Hi Mr.Anthony , please ask someone in bank negara or ministry of finance about the credit company which is not under Bank negara Malaysia like aeon credit and toyota capital? It was said that these 2 companies are not going to follow other banks in this moratorium. Surely most Toyota’s owner that took hire purchase loan from this credit community will be severely affected if nobody lend their hand to also urge this Tcap by also giving moratorium to their hirer in this pandemic situation. Please Mr.anthony. its like the minister has overlooked this finance company but all the records will still appear in CCRIS record of bank negara malaysia regardless of the ” tcap is not under BNM ” so they will pressure all their hirer to commit payment .isn’t it unfair when so many are not allowed to work or badly affected by this FMCO.

    Like or Dislike: Thumb up 3 Thumb down 0
    • YB Kunta Kinte on Jun 30, 2021 at 6:41 pm

      betul tun…is the stupid gomen bangang so many are not allowed to work and badly affected by this FMCO. for myself Parkson Credit 5% riba rm27ribu personal loan outstanding,

      Like or Dislike: Thumb up 2 Thumb down 4
      • Western Star on Jun 30, 2021 at 10:16 pm

        There was never going to be a quick fix, so what we should do now is buckle down and sit tight for the rest of the ride. It would be foolish for our politicians to be casual with the SOP just because case numbers have dropped a little.

        Yes, there could be adjustments, where operating hours and re-opening of some sectors are concerned, but there shouldn’t be major changes for the sake of providing breathing space to businesses. We ought to know by now that we’re poor with self-regulatory approaches, and we have taken advantage of the leeway, thinking it’s a sanctioned return to normalcy. Yes, it is our fault, no one else.

        Amazingly, we have evaded the exponential surge of cases with the lockdown. Otherwise, we would have had 13,000 cases by June 14, and then 20,000 and perhaps 30,000 to 40,000 later. We managed to flatten the curve.

        The squabbling politicians can do what they want then, and that includes pressing for a general election. Right now, with only about 10% of the population vaccinated, the people aren’t interested in fulfilling politicians’ ambitions. Yes, we have an unstable government, but why should we endanger our lives for these Members of Parliament so they can be in power through another back-door entry?

        Politics in Malaysia has become so toxic and ridiculous that we only hear of politicians who think they are entitled to be the prime minister, or politically expired politicians and former Cabinet ministers who desperately want to retrieve the power and its perks. But the worst kinds are those who are now ready to throw away political ideologies so they can form a new government, be it before or after the general election.

        So, one wonders if our politicians are even trying to find new approaches and ideas to help fight the pandemic, which is threatening to become endemic – meaning it’s here to stay. Malaysians, in general, are sick and tired of the level of politicking by our elected representatives.

        Politics may be loud in social media and chat groups because many people are bored working from home, and probably because they have the time to keep forwarding political information. However, most Malaysians are still worried about putting food on the table.

        So, to heck with politicians and their goons using us as their tools to force an unnecessary change. Let’s all pool together to do our best to recover from this global disaster.

        Like or Dislike: Thumb up 2 Thumb down 1
  • AZMAN BIN RAYAN on Jun 30, 2021 at 5:14 pm


    Like or Dislike: Thumb up 0 Thumb down 0
  • Pena Lara on Jun 30, 2021 at 5:35 pm

    Jangan buat rakyat rasa kecewa dan tertipu .. . Rakyat sedang susah dan tertekan. Sekali sekala belajarlah buang sifat kapitalis walau ianya mengurangkan kekayaan sendiri.

    Like or Dislike: Thumb up 0 Thumb down 6
    • Amran on Jun 30, 2021 at 6:43 pm

      Dah bagi betis ni pulak demand mau sebijik ayam? Cis! bagi pelempang lagi baik.

      Like or Dislike: Thumb up 6 Thumb down 2
  • Mohd firdaus bin tarpize on Jul 04, 2021 at 6:03 pm

    Macam mana nak mohon moratorium yang PM umum baru baru ini…siapa yang saya perlu hubungi

    Like or Dislike: Thumb up 1 Thumb down 0
  • Mr Jaido on Jul 07, 2021 at 8:23 am

    Sebenarnya, moratorium ni untuk orang yg tak berapa terjejas. Gaji ada potongan tapi still masyukk Dan masih dpt bayar loan bulan²..mereka yang terjejas plak..hilang pekerjaan, TIADA pendapatan berbulan²..bil,sewa, loan smua sangkut sebab lebih utamakan makanan. Untuk dapat moratorium, kena settle yang tertunggak dulu. Dah sah² depa tak mampu. Dengan anak yang ramai, hutang sana sini dan Makan pun susah nak the end tak layak. Mereka tercicir. Tapi takpe, mungkin ada kebaikan di masa hadapan disebalik kesulitan pada masa kini.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kalong anak Ali on Jul 10, 2021 at 6:41 am

    Moratorium apply for 6 month

    Like or Dislike: Thumb up 0 Thumb down 0
  • B Hooi Cheng on Jul 10, 2021 at 12:01 pm

    What does it mean “Interest/Profit continues to accrue” does it means the interest due on the unpaid month still exist but need to be paid later?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Govin on Aug 02, 2021 at 2:18 pm

    I would like to take moratorium

    Like or Dislike: Thumb up 0 Thumb down 0

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