2021 RHB Pemulih moratorium on automobile loans – Postponement of 6 months or reduction of 50%; custom plans offered


Last month, Prime Minister Tan Sri Muhyiddin Yassin announced a six-month moratorium on the repayment of bank loans for all Malaysians. The relief program is similar to what was offered in the first round of the movement control order last year, and those in need of assistance can submit their requests starting today.

Previously, financial institutions continued to provide targeted repayment assistance to people affected by Covid-19 and movement control orders. The the moratorium is accessible to all from segment B40 to T20, including micro-entrepreneurs.

RHB has updated its Covid-19 Help and Assistance page, so let’s explore the options available to you through its Repayment Assistance (RA) program, with a particular focus on loans automobiles.

The bank offers three options to customers, including one six-month installment deferral, a 50% reduction in monthly payments for six months, or one customized reduction of monthly payments by loan extension.

It’s up to you to choose the option that best suits you, and you can submit your application through the prepared electronic form. You can also contact RHB at 03-2776 3111 or by email ([email protected]), but check ahead to make sure your preferred branch is open or if there is a revised opening hours.

It is important to remember that the the moratorium is not a loan exemptionso you don’t get six months of “free payments”. Instead, your payments are deferred but accompanied by a six-month loan term extension accordingly – this will also see the the total interest paid being higher due to the extension of the mandate.

RHB did not provide a sample scenario of how its deferral will work in terms of numbers, but it is similar to the CIMB example, which you can check out. The interest will vary depending on your loan amount, the remaining term and the agreed interest rate, so check with RHB for details before making a decision.

RHB also did not provide an example of reducing your monthly payment by 50% for six months. However, as there is no extension of the loan term and the monthly payment remains the same after the six-month 50% reduction, the outstanding balance is due at the end of the loan term, all at once. Basically the accumulated 50% that has not been paid for six months must be paid at the end of the loan.

While there are no examples for the first two options mentioned, RHB has provided one that relates to personalized monthly payment reductions by loan extension. This option essentially allows you to Reduce your monthly payment by increasing the duration of your loan, although you will need to discuss with the bank what amount and terms are right for you.

In RHB’s scenario, there is a nine-year car loan of RM 100,000 at an interest rate of 4.29%, with six years remaining. The amount remaining at this point is RM80,452 and the borrower pays RM118 per month.

Opt for a RM 1,042 lower monthly payment with a six-month extension, the total payout is RM81,270.68, which is a difference of RM818.68. The bank offers extensions up to two years, and as you can see in the example, the monthly payment decreases considerably with a longer extension, but at the expense of increasing the total payment. As RHB says, “we recommend that you compare short-term benefits to long-term costs. “

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Unlike targeted aid, there is no need to prove a pay cut or job loss, and no documents are required. All borrowers will be still need to ask for the moratorium, and sign an amended loan agreement.

Approval is automatic for individual borrowers, and approvals should be made within five days if you are qualified. In the meantime, for companies, it is subject to review by the bank and not automatic. Also, accept the loan break will not affect the status and CCRIS rating of an individual, so there is no need to worry.

Again, contact RHB by phone or email (list above) for more details on their RA program, or visit any HLB agency near you.

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

Key words: COVID-19[female[feminine

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