Prime Minister Tan Sri Muhyiddin Yassin in a special live telecast today announced that the government will extend the moratorium on bank loans for those who either lost their jobs or had pay cuts this year due to the Covid-19 pandemic.
Muhyiddin Yassin said Malaysians who lost their jobs this year and still haven’t secured a new job can benefit from the extension of the moratorium for another three months – until December 31.
The moratorium period can be extended depending on the individual’s situation
He further explained after three months given by the government, the moratorium period can be extended by the banks depending on the individual’s situation.
Monthly instalments meanwhile will be reduced for those who had their salaries cut.
“For housing loans or personal loans, for example, monthly installments will be reduced by the same rate at which their salaries were cut.
“This will only be for six months, although any extensions will be based on individuals’ current salary.”
Originally, the six-month moratorium announced in March, ends on September 30. During the period, borrower is not obligated to make monthly debt repayments to the banks. This is to relieve the burden of borrowers who are greatly affected by the impact of the Covid-19 pandemic. Besides, it was also designed to keep cash within households – given the uncertainty at the start of the pandemic.
If you are either lost your job or had pay cuts this year due to the pandemic, you can go to the bank to discuss about the extension of moratorium.