Banks to notify borrowers about deferment from Friday

Bank Negara Malaysia said on Thursday the borrowers/clients would be notified via SMS, email or registered mail from their banking institutions.

KUALA LUMPUR: Borrowers/customers with hire purchase loans and fixed rate Islamic financing will receive a notification from Friday on the steps needed to take to complete the process of deferring their loan/financing payments under the moratorium.

Bank Negara Malaysia said on Thursday the borrowers/clients would be notified via SMS, email or registered mail from their banking institutions.

Banking institutions will also provide to each borrower/customer specific details of changes to the terms of his/her HP loan or fixed rate Islamic financing agreement.

“This should contain information on the revised payment schedule and any changes to payment amounts, including those arising from normal interest/profit rate accrued during the moratorium, ” it said.

Bank Negara said borrowers/customers who do not wish to take up the moratorium can still choose to do so at this time by informing their banking institutions and resuming their scheduled payments based on the terms of their existing agreements.

In such a case, borrowers/customers will be given reasonable time by banking institutions to regularise any outstanding scheduled payments that were earlier deferred under the moratorium.

It emphasised that banking institutions will not impose overdue or late payment charges on these payments until they are due based on the revised payment schedule agreed with borrowers/customers.

It urged borrowers/customers to refer to the websites, internet banking portals or call centres of their banking institutions for further information.

On March 25, Bank Negara said banking institutions were formalising agreements which reflect the revised payment terms with borrowers/customers with HP loans and fixed rate Islamic financing to give effect to the 6-month moratorium on loan/financing payments.

This is to comply with the procedural requirements under the Hire-Purchase Act 1967 and Shariah requirements which are applicable to any changes that are made to the terms of these agreements, including changes to the payment schedules and/or amounts as a result of the moratorium.