Finance Ministry now urges banks to consider not charging accrued interest

Tengku Zafrul

By John Isaac

FOLLOWING strong opposition from the people, Finance Minister Tengku Zafrul Tengku Abdul Aziz has now urged banks to “consider” not charging accrued interest or profit during the loan repayment moratorium period.

“Considering that there is a possibility that this could happen and after listening to the needs of the rakyat, I urge all financial institutions … to consider (not charging) accrued interest (for hire purchase loans) or profit (for fixed-rate Islamic financing loans) during the six-month (repayment) moratorium,” he said in a Facebook post this morning as reported in Malaysiakini.

He said his ministry has initiated proactive measures by engaging Bank Negara and banks to make the “correct decision according to the needs of the rakyat”.

On April 30, Bank Negara clarified that the two types of financing products will continue to accrue interest or profit charges during the moratorium period.

This caused outrage among customers who initially were led to believe otherwise.

In its latest FAQ, Bank Negara has explained that bank customers should consult their bankers on repayment options after the moratorium.

Options include extending tenures or increasing monthly instalments.