MoF: No more interest on 6-month moratorium for hire purchase loans

In another act of U-turn, the Ministry of Finance has just announced that there will be no additional interest on hire-purchase (HP) loans for those who took up the 6-month moratorium.

This overrules the earlier statement by Bank Negara Malaysia (BNM) that the 6-month moratorium will incur interest charges.

Borrowers who took up the 6-month moratorium will continue to pay the same monthly installment as before as stated in their HP agreement with their respective banks.

The 6-month moratorium is offered to all HP loans that defer the repayments from 1 April to 30 September 2020 to help reduce the people’s burden during the Movement Control Order period.