Finance Minister Tengku Zafrul Aziz today clarified that banks would not impose any compound interest or penalties for late payment on borrowers who take up the loan moratorium offer announced yesterday.
Zafrul said banks had agreed to implement the freeze on repayments based on the same terms of the six-month moratorium given during the first movement control order last year.
He said the move would help borrowers defer their repayments to a later date.
Putrajaya yesterday eased the process for borrowers to apply for moratoriums on bank loans as part of the RM150 billion Pemulih financial aid package to cushion the impact of the ongoing lockdown.
Prime Minister Muhyiddin Yassin said the six-month moratorium would be granted to borrowers from all income levels as well as to micro-entrepreneurs from July onwards.
“There are no conditions such as a loss of income, no checks on whether you have lost your job, and no documentation needed for applications.
“You only have to apply, with automatic approval given,” he said.