BNM: No need to apply, interest will be accrued
Interest will continue to accrue during the deferment period. This could result in higher subsequent instalment amount or an extension of the loan tenure.
(The Star) – BANK Negara has issued a FAQ on the six-month loan repayment moratorium, which clarified that borrowers need not apply as the process is automatic.
The central bank also clarified that the interest will continue to accrue during the deferment period. This could result in higher subsequent instalment amount or an extension of the loan tenure.
Below is the FAQ in full.
Q. What is deferment of loan or financing repayment?
it is a temporary deferment or suspension of loan/financing repayment obligation (principal and interest) for a limited period of time.
During this period, borrowers/customers with loan/financing that meet the conditions do not need to make any repayment, and no late payment charges or penalties will be imposed.
Interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers/customers will need to honour the deferred repayments in the future. Loan/financing repayment resumes after the deferment period.
