03 August 2021
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.
If this is your first time signing up, you should know that a moratorium is just a ‘pause’ in payments. Basically, 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.
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.
Thinking of signing up already? There are some criteria you need to fulfil before being given the moratorium:
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 bank. This 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.