Loan Moratorium is ending this September 2020, what should I do?

Many Malaysians benefited from the six-month loan moratorium offered by the BSN back in April 2020.

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The initiatives have brought much-needed relief for a lot of families who have their household income affected, especially those who receive retrenchment and salary cuts. The moratorium has effectively reduced their cost of living during the tough economic time by delaying loan repayments to Banks. ^[1]

UUp until July 2020, the moratorium introduced totaled up to RM66 million and borrowers from the loan moratorium is expected to resume their loan repayment starting October 2020. ^[2]

What should I do?

If you have been under the loan moratorium from April 2020, you are expected to resume your repayment beginning October 2020. You should be expecting a post-moratorium repayment notification from your bank with all the guide for your loan repayment. If you did not receive any notice by September 2020, please contact your respective loan issuer to find out available option.

What is the extension of moratorium all about?

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You may think delaying your loan repayment is a good idea. In actual fact, this extension is not meant for everyone. This extension of moratorium is only open for application for groups who are still experiencing unemployment and salary cuts. For those under this category can apply for an extension of moratorium for another 3-months and adjust their loan repayment with their current salary for another 6-months ^[3]

HELP! I am not ready to repay my loan, what are my options?

Option	Description
Reschedule	Rescheduling your loans is extending the duration of your loan or revising your monthly payments without changing the terms and conditions of your loan agreement such as the type of loan or interest charged.
Restructure	Restructuring is when you need to change the terms and conditions of your loan or the type of loan, for example, from a bank overdraft to a term loan.
Debt Consolidations Loan	You take a new loan that pays off all your existing loans. Getting a loan to pay off other loans doesn’t exactly sound like the best idea. But, you'll get just to pay off one loan with a single interest rate. Just make sure you can afford the new loan, or you'll be right where you started! ^[4]

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If you have one loan, you may speak to your Bank directly. If you have numerous loans, speak to Agensi Kaunselling dan Pengurusan Kredit (AKPK). AKPK could give you counselling on how to handle your loans, or you could get into one of their debt management programmes. ^[5]

What will happen if I refuse to pay nonetheless?

Well, there are always consequences to your actions, don't say we didn't warn you.
1. You’ll end up in more debts than before (Thanks to the additional interest and penalties incurred)
2. Your credit score (CCRIS & CTOS) will be affected.
3. Your assets (house/vehicle) will be confiscated by the banks.
4. Risk getting filed for bankruptcy.

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Sources:
1. https://loanstreet.com.my/learning-centre/things-to-know-bnm-loan-repayment-moratorium
2. https://www.malaymail.com/news/malaysia/2020/08/11/tengku-zafrul-moratorium-on-loan-repayments-estimated-at-rm66b-as-of-end-ju/1893011
3. https://www.channelnewsasia.com/news/asia/covid-19-malaysia-extends-loan-moratorium-for-3-months-lost-jobs-12972772
4. https://rojakdaily.com/news/article/10232/the-loan-moratorium-is-ending-soon-what-should-you-know
5. https://www.akpk.org.my/