The government has brought back the six-month loan moratorium for individual borrowers. The move was part of the new Pemulih aid package to assist the rakyat in coping with the lockdowns.

The six-month loan moratorium was first offered in March 2020, where borrowers delay loan repayments and specifically with hire purchase loans, no additional interest was added into the principal.

The term of the hire purchase is simply extended by six months and the credit scores were also not affected.

Under the Pemulih aid package, the government has relaxed all requirements and conditions, with the loan moratorium opens to all income groups and micro-entrepreneurs.  

“There won’t be conditions such as a reduction in salary, loss of job or documents that need to be submitted for the application,” said the Prime Minister. A borrower just needs to apply and the approval will be granted automatically.

Don’t head to your bank’s web portal just yet, as the application for the loan moratorium only begins from July 7th.

In the aid package, the government will also be freezing the prices of RON 95 petrol, diesel and liquified petroleum gas (LPG) for the rest of the year, which amounts to over RM6 billion in subsidy cost.

The RON 95 petrol and diesel have been capped at RM2.05 and RM 2.15 per litre respectively since February 2021, while the premium grade RON 97 and RON 100 follows the pricing trend of global crude oil prices which has been steadily going upwards.