5 Things To Know About The Moratorium Before You Sign Up For It

For this latest one announced by our government, this moratorium will be available to the B40 and M40 groups, and to small to medium enterprises (SMEs)Whereas, the first moratorium was only open to the B40 group. We will look at how this moratorium is going to work, so you can decide whether or not you want to opt in.

1. You’ll still need to pay later

If this is your first time signing up, you should know that a moratorium is just a ‘pause’ in paymentsBasically, you will be given 6 months off from paying back your loans but you will have to continue paying back once the 6 months have lapsed.                                                                    

2. You’ll need to apply for it

There’s an application process, and either there’ll be a form on your bank’s website to fill up, or your bank will send you an application form via email or you can head over to the bank.

3. You’ll need to fulfil certain criteria

Thinking of signing up already? There are some criteria you need to fulfil before being given the moratorium:

  • The moratorium applies to any financing approved before 1st July 2021 only
  • You must not have missed your monthly repayments by more than 90 days and you cannot be bankrupt
  • If you are a company, you cannot have started winding up proceedings (shutting down your company

4. The total amount of your loan will increase

While a pause in payments sounds great, you’ll need to proceed with caution again. Signing up for the moratorium means you’ll end up owing more money to the bankThis is due to the fact that even though you don’t need to pay for 6 months, you’ll still be charged interest during that time.                                                                                                                                                                                                                                                               

5. It won’t affect your credit score 

Your Central Credit Reference Information System (CCRIS)—more commonly known as your credit score— If you’re worried that opting in for the moratorium will affect your credit score, worry not as Bank Negara has clarified that this will not be the case.                                                                                                


Kuchai Lama