KUALA LUMPUR, April 30 — Banking institutions are in the process of formalising revised payment agreements with their customers to reflect the moratorium for hire-purchase loans and fixed-rate Islamic financing.
In a press statement today, Bank Negara Malaysia (BNM) said that this is part of the required procedure under the Hire-Purchase Act 1967 and Shariah requirements — where it is applicable for any changes made to the terms of the original agreements including payment schedules as a result of the moratorium.
“BNM has required banking institutions to take appropriate steps to ensure that borrowers/customers are provided with clear information on the process and changes to the terms of their agreements, as well as convenient means to conclude these agreements in view of the movement control order.
“Starting from May 1, 2020, borrowers/customers with Hire Purchase (HP) loans and fixed-rate Islamic financing will receive a notification via SMS, email or registered mail from their banking institutions on the necessary steps that they need to take to complete the process of deferring their loan/financing payments under the moratorium.
“Banking institutions will also provide to each borrower/customer specific details of changes to the terms of his/her HP loan or fixed rate Islamic financing agreement.
“This should contain information on the revised payment schedule and any changes to payment amounts, including those arising from normal interest/profit rate accrued during the moratorium,” said the statement.
The central bank added that borrowers who opt out of the moratorium can choose to do so at this time and must inform their banking institutions while resuming their scheduled payments based on the terms of their existing agreements.
These borrowers will be given reasonable time by their banks to regularise any outstanding payments that were deferred under the moratorium.
BNM also stressed that banks are not supposed to impose overdue or late payment charges on these payments until they are due based on the revised payment schedule agreed between with their borrowers and customers.
It also advised borrowers to refer to their respective bank’s website or call centres for further information.