No changes to hire purchase payments, says finance minister

The amount paid for hire purchase loans prior to the six-month moratorium will remain unchanged, the government says.

PETALING JAYA: The finance ministry and banks have come to an agreement which will see hire purchase loan repayments unchanged after the end of the six-month moratorium.

This means that whatever amount a person has been repaying the banks for the hire purchase loans prior to the moratorium will remain the same with only the repayment period extended for six months.

“The government hopes this decision will ease the burden of the people during this challenging time,” Finance Minister Tengku Zafrul Aziz said in a statement today.

He said this would apply to both conventional and shariah loans.

“This means that no additional charges will be applied during the moratorium.”

He added that borrowers can obtain further information from their banks.

Previously, Tengku Zafrul urged banks to consider abolishing the accrued interest on hire purchase loans and fixed rate Islamic financing during the six-month moratorium on repayments in the wake of public concerns over the matter.

He said then that the ministry was ready to work with Bank Negara Malaysia and the banking sector to ensure the recommendation can be carried out if the institutions are agreeable.

While several banks are already offering loan deferments without imposing accrued or compounded interest, this does not cover all loan products.

Tengku Zafrul said each bank would set its own approach on matters related to interest imposition during the moratorium.

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