Loan Deferment/Moratorium FAQ for Year 2020, What is it for me?
What does "loan moratorium" mean?
Moratorium means "deferment" in this context. It is a temporary postponement or suspension of loan/financing repayment commitment (principal and interest) for a limited period of time. During this period, borrowers with loan/financing that meets the conditions that has been set by respective banks/financial institutions do not need to make any payment of their loan/credit and no late payment charges will be imposed.
Do I need to apply?
No. There is announcement made by Bank Negara, an automatic moratorium is granted to all loans/financing (except credit cards, charge card and corporate cards) for individuals and SMEs, that meet the criteria. However, you may call your respective banks/financial institutions to get more information.
What is the criteria to qualify for deferment?
Loans/financing accounts that are already more than 90 days in arrears as of 1 April 2020 are not qualified for deferment. We would recommend you to check further with your banks/financial institutions.
My loan is under rescheduling and restructuring program. Will I be qualified for the deferment program?
Loans/financing under rescheduling and restructuring program is also qualified for the deferment. It is subject to your banks'/financial institutions' criteria. Therefore, please check further with your respective lenders for details.
My loan/financing is in default, can I apply for deferment?
Loans/financing that are already default for more than 90 days in arrears, will not qualify for the deferment. However, we advise you to contact your loans/financing provider directly to qualify for the deferment.
If I opt for a loan/financing deferment package, can I still be able to get new loan/financing from the banks in future?
Yes, however the approval is depending on the banks/financial institutions credit policies and assessment.
Which loans/financing can I apply for deferment? I am confused, do you have a simple table to share for my better understanding?
You do not need to apply for loan moratorium / deferment. It is automatically granted if your loans are not more than 90 days in arrears as of 1 April 2020. It applies to your housing loan, car loan (hire purchase loan), personal loan and SME loans. Only credit card, charge card and corporate credit cards are not included.
Can I request for more than 6 months deferment?
The automatic deferment is only for 6 months. However, you may contact your respective lenders if you require a longer deferment period.
For loans deferred under moratorium, will my CCRIS records be adversely affected?
No. Payment deferred under the moratorium will not be reflected as defaulted payments in CCRIS. However, interest/profit will continue to accrue on loan/financing repayments that are deferred, and you need to make payment in future after the end of the loan moratorium.
Would the loan deferred under moratorium affect my credit score?
No. Your credit score should not be penalized as the payment deferred under the moratorium will not be reflected as defaulted payments in CCRIS records.
However, we encourage you to check your credit report regularly during this moratorium period to make sure the loan deferment is being reflected accurately in your CCRIS report and you can contact the lenders immediately if you detect any discrepancies being reported.
Which banks offer this deferment package?
All licensed banks, financial institutions, licensed Islamic banks that is regulated under Bank Negara Malaysia will offer this flexibility deferment.
I do not intend to sign up for deferment package/how do I opt-out of the automatic deferment package?
You can continue to make timely payment / full monthly payment of your loan/financing and please contact your respective bank if you wish to opt-out of the automatic deferment package.
I am also a business owner. Can I apply for deferment payment for my business?
Yes, provided that your business loans/financing are not in arrears for more than 90 days as of 1 April 2020.
I am currently enrolled under Debt Management Programme (DMP) of AKPK of which I am paying a fixed payment every month, would this payment be under 6-months deferment?
Yes. AKPK has announced on their website that they are providing automatic moratorium of payment to all AKPK DMP customers for a period of 6-months, which is effective from April 2020 to September 2020. The customers are encouraged to make DMP payments as normal if they are not experiencing any financial distress due to the COVID-19 pandemic.
I have loans/financing that is deducted through salary deduction under ANGKASA. Do I qualify for the deferment?
Yes. As long as you meet the criteria and are not in arrears for more than 90 days as at 1 April 2020.
For loans/financing deducted through ANGKASA, it is not under Bank Negara Malaysiaâ€™s regulation. It is advisable for you to contact your respective lenders to clarify in this aspect.
How do I stop Angkasa from deducting my salary if I want to defer my loan?
It is advisable for you to approach your respective lenders to discuss with them your request and the steps to move forward.
How about my loans with other lenders that are not regulated under Bank Negara Malaysia? Would I be eligible for loan deferment of 6-months?
You are advised to speak to your respective lenders who are not regulated under Bank Negara Malaysia directly to discuss the options available if you are facing financial hardship due to COVID19.