Bank Negara Malaysia have announced a 6-month moratorium for all bank loans except credit card balances, starting 1 April 2020. The moratorium is basically a temporary freeze on loan repayments.
However, do remember that the moratorium applies only to loan repayments. Interests will continue to accrue every month as usual.
Also, the moratorium applies only to loans that have not been in arrears (all previous payments owed paid in full) for more than 90 days as of 1 April 2020.
How does the 6-month moratorium affect car loans?
Let’s say your car loan’s tenure period runs until January 2025. The 6-month moratorium simply means that your car loan’s tenure period will now be extended until July 2025.
Assuming you have made full payments in the last 90 days, you don’t have to pay anything from April 2020 until September 2020. Auto debits will also be paused.
Details on exactly how this moratorium will be implemented will differ from bank to bank. For example, some banks might offer customers the choice of either to settle the accrued interests in one lump sum payment or adjusting the monthly repayments.
Update 27-March: Most banks have confirmed that interest and late payment charges will be waived for six months. However, for banks that offer variable rate auto financing products, there will be an additional bullet payment at the end of your loan's tenure.
Of course, if you want to continue paying your loan as usual, that’s also fine, but if you are using an auto debit facility, it is best to contact your bank for clarification since auto debits have been paused.