2021 CIMB Pemulih moratorium on car loans – deferred for 6 or 3 months, but with additional interest charges

On June 28, Prime Minister Tan Sri Muhyiddin Yassin announced a six-month moratorium on the repayment of bank loans for all Malaysians. It is similar to what was offered in the first round of the movement control order last year, and the applications are now open.

As financial institutions continued to provide targeted loan assistance to those affected by Covid-19 and movement control orders, as part of the latest Pemulih plan, the moratorium is for everyone – it’s true, from the B40 segment to the richest 20% in the country and to micro-entrepreneurs.

The CIMB Covid-19 relief and support page is now live, and here we take a look at what’s required, with a focus on auto loans.

Basically, the bank offers deferral of installments of three or six months, and customers can choose one. If you have more than one loan account, you will need to tell the bank which (or all) you want to enter the program. CIMB can be contacted on 03-62047788 or [email protected] Depending on where you are, some branches may be open, but opening hours have been reduced – check before you go. You can apply through this electronic form.

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So, the details. First of all, you will have to remember that the moratorium is not a waiver of the loan – you do not get three or six months of “free rental”; instead, your payment has been deferred, and the the loan term will be extended by six months Therefore. Note that the the total interest paid is higher following the extension of the mandate.

The example CIMB scenario above is a auto loan over 7 years at 3%. The remaining sum is RM37,081 and the borrower’s monthly payment is RM 529 per month. Those taking the six-month moratorium will pay a total of RM12,972 in total interest over the life of the loan, as opposed to the original RM12,150 – that’s a RM822 difference. If you repay your loan early, this additional interest due will be prorated.

This additional RM822 of interest shall be paid in the last month of your loan term, which will total RM1 351 (529 + 822). The latter is opposed to the spreading out of monthly payments after the end of the moratorium. For convenience, you’ll pay the same RM529 you remember after the six-month break ends. Quite simple.

So sign up if you need any help, but be aware that it incurs additional interest charges. Note also that this the additional interest comes from extending the loan and is not compounded. Of course, it will vary depending on the amount of your loan, the remaining term and the agreed interest rate.

Unlike targeted assistance, it is not necessary to provide proof of a pay cut or job loss – no documents are required. Although it is open to all individuals, and approval is automatic, borrowers should always apply to the bank and sign the amended loan agreement form because things have to be on paper, in black and white.

Don’t be put off by the application process, as approval will be automatic for individual borrowers. Small and medium-sized enterprises (SMEs) can also apply, but for businesses, it is subject to bank review and not automatic. Also, another important point is that the acceptance of the loan break does not affect the status and CCRIS rating of an individual, then carry on with peace of mind.

If you want to apply, contact CIMB and they will get back to you within five days to arrange the signing of the documents. By default, the the loan break begins the month following your request, but if you want it to start in July, let the bank know. Also, if you already have a payment assistance program, you can upgrade to it, but you will need to talk to the bank about it.

CIMB also mentions that this program also applies to newly approved / newly disbursed auto loans – you can apply in the same way. Contact CIMB by phone or email (details above) if you need more information, and you can visit a branch if you want. You can apply through this electronic form.

Besides CIMB, banks that have announced their moratorium options on Pemulih include:

Key words: COVID-19[female[feminine

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