How exactly will the deferment change the terms of our current loans? The information really helps me to understand better about the moratorium =). If you are unable to access video conferencing, please make an appointment with us. Will I need to pay more interest/profit after the moratorium period is over? What about mortgage – progressive interest? Another Q is do all the banks give all the 3, options or they will fix the option ? The impact of COVID-19 has affected the abilities of charities to provide food and meals to those in need. That said, it makes sense to still take the deferment and save the money in a fixed deposit with 4% p.a. Maybank TREATS SG Lifestyle Mobile App was launched in the third-quarter of 2018. Some banks will also offer Option 2 (B), which is extending your loan tenure by 6 months (i.e. How about flexi loan? Our goal is to fund 20,000 meals, and we need your help. Progressive interest will still be eligible for for the deferment, but based on the banks’ FAQs, you need to clear off the outstanding interest accrued during the deferment period before the disbursement to prevent any accrual of additional interest imposed on the principal (due to reduce payment towards the principal). This is because the interest follows a flat rate basis, and since the principal sum does not increase, you will enjoy a true “payment holiday” with no implications from today until the end of September. But remember, this isn’t free money – this is the amount you’d have to spend for your home loan. If so plse reconfirm. For repayment Option 3, this interest is added to the outstanding principal at the end of the deferment period, and treated as “new outstanding balance” from October 2020 onwards (ie RM510,000.02). Note: While the loan tenure extension can ease your cash flow, consider this option only if you really need to as it comes with higher interest costs and takes a longer time to pay down your loan principal amount. I am… Read more », Hi Lim, as per another query, am replying the same: Both RHB and CIMB have stated that the installments from Month 7 onwards will go towards settling outstanding interest accrued from Months 1-6 (Apr – Sep 2020). To help our F&B merchants during these difficult times, Maybank would like to invite our F&B merchants from the Visa and Mastercard merchant programme to leverage our Maybank TREATS SG Lifestyle Mobile App to advertise your offers to our app users for free. Click here to locate your nearest centre. It definitely sounds noble, but how much is this amount exactly? The only additional charges that can be imposed is late payment fees, which BNM expressly forbids during the deferment period. Usage of your unsecured credit facilities can only be available after full repayment of the term loan. Customers are required to wear a mask and sanitise their hands before entering the premises. These are the safe management measures in place for your safety and well-being. This ESS relief measure is available to customers who have taken up the SFRP, as well as customers who have not. After the ESS for reduced instalment period is over, the monthly instalment comprising full principal and interest will resume. Bank will never lose even a single cent by allowing customer to borrow for free 6 months… Data from the National Property Information Centre shows that between 2009 until 2018, there were over 2.3 million residential properties sold. So in october i just need to pay as normal and my loan tenure will just extend 6 months only rite? This ESS relief measure is available to customers who have taken up the SFRP, as well as customers who have not. You are not on any existing debt repayment or restructuring programmes with Maybank Singapore. Note: If the loan is being assigned to another financial institution, the same charges stated above shall apply. This is what I quote from their website’s FAQ, “The monthly instalment/payments will first be allocated to pay off all outstanding interest/profit. Let’s say your car loan’s tenure period runs until January 2025. However could you furnish us with the formulations on calculating the total interest charged from deferment of option 2(B) and repayment difference of RM47.81 in option 2(B), Our co-founder, Hann, built a tool to help us calculate them. The table below shows how much interest that will accrue during the deferment period, both if it compounds and if it does not: As you can see, despite what the banks are saying, the compounding interest charges that they are all waiving isn’t actually a very big sum (from an individual perspective). I took a personal loan from my credit card line of credit. on opt 3. If I continue doing that during the moratorium, and assuming I take up the moratorium, would I not be saving more since effectively the balance in the current account will not be debited towards loan payment, and the effect is that the interest charged will be on a lower outstanding sum (since the principal and interest are not debited for 6 months)? Question 2: what if we opt for the moratorium, n save the instalments over the next 6months, pay off the accrued interest after 6months n instead feed the whole saved amount as a lump sum contribution to reduce the principal amount? Thank you, A lot of things are highly inaccurate. Infographic of Extended Credit Support Measures for Individuals and SMEs, FAQs on Extended Support Scheme for Individuals, https://www.etiqa.com.sg/important-updates/defer-premium-life/, https://www.etiqa.com.sg/important-updates/defer-premium-general/. no profit from accrued profit), regardless of whichever repayment option you choose, the financial commitments will be the same: you just need to repay the accrued profit from the 6-month deferment (i.e. If you are able to service your loan as usual and are financially secure in this economic climate, you can consider opting out of the deferment programme. You should check with your bank on your available options before opting in for the deferment just in case. Option 3, where you pay a little extra each month, helps to offset this accrued amount. As what RHB says: “We advise that the deferred monthly progressive… Read more », For auto loan, i don’t think banks are so kind hearted to give free “payment holiday”. By doing so, your monthly instalments will be reduced, thereby easing your cash flow burden. Note, also, that all banks are saying that they will not compound interest “during the deferment period” – none of the FAQs say that there will be no interest compounding from October 2020 onwards. Your Credit Card and/or CreditAble are not in arrears for more than 90 days. For option of Credit Card conversion to Term Loan, is it advisable to apply? Love your insights and calculations for us. For more information please visit https://www.etiqa.com.sg/important-updates/defer-premium-life/ and https://www.etiqa.com.sg/important-updates/defer-premium-general/. In the unfortunate event that insured persons are diagnosed with COVID-19, they will receive complimentary coverage for hospitalisation benefits of S$100 daily (up to 10 days) for patients in stable condition and S$200 daily (up to 5 days) for those in the Intensive Care Unit (ICU), including a lump sum payment of S$50,000 in the event of death. Maybank offers 6 month moratorium on loans instalments for flood victims. We will continue to stay vigilant about evolving scenarios and comply with nationwide control measures. Hope that helps! It is basically saying that you do not need to meet your monthly loan payments for that amount of time, and will not be penalised for it. Etiqa life insurance policyholders with active policies and who are financially affected by COVID-19, including policyholders who have suffered loss of job or loss of income from work or business, may defer premium payments for up to six months while maintaining insurance coverage. Hello ringgitplus. If it… Read more », Question 1:If we opt for Option 3, must we speak to our bank officially n inform them to recalculate our higher installments without affecting the tenure. This ESS relief measure is available to customers who have taken up the SFRP, as well as customers who have not. By deferring the payment for six months, you’ll free up RM2,390.52 each month to use for buying groceries and other essentials if the extra cash is needed. All other loan repayments are no more than 30 days past due. For more information please contact us at 1800-629 2265 / (65) 6533 5229 (Overseas). If you do not have an advisor, kindly contact us at at 1800-629 2265 / (65) 6533 5229 (Overseas). Where do you find fixed deposit that can give you 4%? However, you may apply to restructure and reschedule foreign currency-denominated facilities, which may include payment/repayment moratoriums. Depending on how you repay this accrued interest, you would still end up additionally paying a minimum of six months’ worth of interest into your home loan. We are waiting for confirmation of the calculations from both banks and BNM before we proceed with the analysis. This will be as per option 2 as per yr example. From now till 30 June 2021, SFRP (DCP) relieves your cash flow by reducing your monthly instalment amount with the extension of tenure by up to another 5 years. KUALA LUMPUR: Malayan Banking Bhd (Maybank) will not be compounding interest for all individual, small and medium enterprise (SME) and non retail/corporate customers loan facilities which are eligible for the six-month moratorium … You experienced a drop in income of 25% or more after 1 February 2020. Back to top. Monthly instalment is capped at 3% of the total loan amount. It may not be much, but hey, this is RM22,970.51 more in your pocket than if you didn’t take the deferment whatsoever. There is no mention of additional interest charges for conventional loans, so for now, it is safe to say that conventional personal loans will have no additional interest charged. Video Conferencing can now be conducted via Webex. How significant is the announcement that banks are waiving compounding interest during the deferment period? This option is the best repayment option to take. ), (Update 30/4/2020 8pm: To reflect BNM and ABM’s announcement to amend the moratorium for hire purchase and fixed-rate Islamic financing, we have removed our recommendation for both types of loans. I believe banks will not do that because that defeats the very purpose of waiving compound interest during moratorium. For many Malaysians, the announcement by Bank Negara Malaysia (BNM) of the 6-month automatic deferment of all loans was met with relief. Please stay tuned for updates. Please check with the banks before posting this kind of info…. The automatic loan repayment deferment will provide a much-needed respite for borrowers, who were both directly and indirectly affected by the Covid-19 outbreak PETALING JAYA: … As a principle, loans/financings denominated in foreign currencies are not eligible for the automatic moratorium. Pay the accrued interest in one lump sum in October 2020 in addition to your usual monthly repayment. Thanks very much. You left out the fact that option 3 required extra payment of 24, 963.60 which your assumption of 4% FD over the next 30 years does not generate sufficient to cover. Here are the most important questions to ask before doing so. Tq. What is the benefit that I gain? If the purchase price (less COE) of your car … The total interest payable over the entire loan tenure will be higher. With that, we can safely and easily recommend taking up this deferment again, with the following explanation from above: During the 6-month deferment period, there will be no additional interest charged. That said, there remains quite a bit of confusion and misunderstanding on the matter. Following the announcement by Bank Negara Malaysia on 30 April 2020, all customers who have decided to take up the Moratorium for Hire Purchase Loans and Fixed Rate Islamic Financing are also required … To find out more on the assistance above, please contact Maybank Cards at corp_ma@maybank.com.sg or 1800-629 2265. * This excludes customers who contracted or are suspected to have the virus before 13 February 2020. To help SMEs tide over this challenging period, SMEs can tap the following government-assisted loans under Enterprise Financing Scheme (EFS): Due to the current COVID-19 situation, we truly understand our existing medical care merchants may face a situation where their patients would prefer to have their regular medication supplies replenished and delivered to their residential address. You For joint applications, assessment will be based on the combined gross monthly income of all borrowers. We may provide recommendations but at the end of the day, each individual’s needs are different, and we hope the explanation and elaboration provided will help Malaysians make an informed decision. Convenience coupled with top of the line service, we provide our customers with the best deals and hassle free experience. To illustrate, let’s say you have just taken a conventional home loan with outstanding balance as of 31 March 2020 at RM500,000. As part of COVID-19 Relief Package, from 8 July 2020 till 30 June 2021, the monthly minimum payment for Maybank Personal Credit Card and Fund Transfer accounts will be reduced from 3% to 1%* of outstanding balance or S$20, whichever is higher. The total additional interest charge for this option is RM33,866.34. In addition, they impose interest on annual rest basis. After I read through the details, I realised your option seems to be missing out on how RHB would calculate the repayment. In the RM500,000 outstanding home loan example, you’ll be extending the tenure by a whopping 21 months (and not just by six months, because the interest accrued during the 6 months will be added to the principal and accrue interest from the resumption of payment). The total interest payable over the entire loan tenure will also be higher. For any questions regarding the loan payment extension, you can contact us via the following: FOR AUTO LOAN. Pay the same monthly repayment amount from October 2020 onwards, but the loan tenure will be extended to accommodate the additional interest payment. Effective 6 April 2020, the bank is providing a Special Financial Relief Programme (Unsecured) to customers whose incomes have been impacted by the Covid-19 pandemic. In view of the current COVID-19 situation, we have taken additional precautionary measures to ensure a safe environment for our customers and staff. I am only paying the interest monthly for now? You may apply to Maybank from 2 November 2020 onwards via an online form. However, the net additional interest would still be the RM10,000.02. Therefore, together with our business partners Red Dot Payment Pte Ltd and uParcel Courier Services, we have implemented an eCommerce Solution to assist our merchants to collect payments and provide delivery services efficiently. We checked all banks’ as well as BNM’s FAQ on this, and they all confirm that interest will accrue during this period. The exception to this is of course Islamic financing plans, where profit cannot be made from profit. That being said, let’s not forget that banks are still generating revenue from the accrued interest over the six months. Assuming you … PETALING JAYA: With the six-month moratorium ending on Sept 30, 2020, Maybank is offering the Repayment Assistance Package options to those who may be affected by the Covid-19 pandemic.. Thanks. (Image: The Star) Maybank has shared some specifics on its post-moratorium repayment assistance packages for customers who may still be facing financial challenges at the end of the current six-month moratorium in September 2020. Hi, thanks for sharing this useful detail calculation on loan deferment with us. It noted that its fixed-rate … On March 25, Bank Negara Malaysia (BNM) issued a directive to all banks to grant an automatic six-month moratorium (deferment) of all loan/financing repayments effective from April 1, … In the explanations below we will continue to use the example of a RM500,000 outstanding conventional home loan at 4% interest p.a. [CDATA[ You should understand that this deferment programme is primarily aimed at those who may face immense financial distress due to the economic effects of the Covid-19 pandemic. Thank you for sharing such insightful article. Interest accrued after moratorium period shall be compounded, yes, BUT interest accrued during moratorium period SHALL NOT be added to the outstanding balance after moratorium period. Both these factors work in your favour, in this case. There’s no wiggle room for banks to charge extra interest during the deferment. the monthly payment but your 6 months interest will accumulate and loan period will be extended by 6 months. The additional rm 10139 already deduct with the loan payment 6 month we need to pay. We will explore this further in our Recommendations section below. This is something important to keep in mind. Would love your thoughts, please comment. Is there an increase in monthly payments, or… Read more », Hi Aaron, Both RHB and CIMB have stated that the installments from Month 7 onwards will go towards settling outstanding interest accrued from Months 1-6 (Apr – Sep 2020). To find out more, visit www.etiqa.com.sg/covid19. Based in your article on the hire purchase, would like to ask other people opinion regarding the option 1, on the month October 2020, meaning to say we will have to pay lump sum of 6 months loan without being charged of any interest? From what I understand, banks will contact you about your repayment options towards the end of the deferment period, that’s your chance to decide. Enjoy the following: As fast as 1 Day approval! At Maybank, your well-being and safety is our top priority. I don’t think option 3 is accurate. EMAIL. 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