Finance Ministry has urged financial institutions to consider terminating the accrued interest (on hire-purchase loans) and profit (on fixed-rated Islamic financing loans) during the six-month moratorium period.
Its Minister Tengku Datuk Seri Zafrul Abdul Aziz said although Bank Negara Malaysia’s (BNM) has decided decision that these loans would face additional interest charges once the moratorium expired and done in accordance with the National Bank Act 2009, the ministry wanted to take proactive measures to find solutions on the matter together with BNM and the banking institutions.
“The ministry is ready to work with BNM and other banking institutions to ensure that such recommendation can be implemented.
“The government is always aware of the people’s voices especially the B40 and M40 groups and we are concerned over the matter.
“In the current economic situation due to the Covid-19 pandemic, I hope that the suggestion can provide some wise reconsideration by BNM and other banking institutions in the country,” he said in his Facebook post today.
He also admitted that there was confusion among the public on the additional interest charges on the loans by the banking institutions.
Tengku Zafrul said one of the reasons for the confusion was unclear dissemination of information to the public from various sources.
“Therefore, on May 1, BNM issued the Frequently Asked Questions (FAQs) on the moratorium for these loans which has been updated on its website. BNM has also conducted a press conference to rectify and explained the matter.
“Lately, the media and netizens have raised questions about this issue. For your information, there are banks that offer loan moratorium without accrued interest or compounded interest on the loan.
“However, it does not cover all loan products. Each bank has its own approach of imposing benefits during the moratorium period.” he said. – NST