7 Aug - 4 min read
Following Prime Minister Tan Sri Muhyiddin Yassin’s announcement last week of providing targeted bank assistance once the current six-month moratorium ends on 30 September, Malaysian banks have begun preparing to offer the required aid to eligible customers.
Accordingly, Hong Leong Bank (HLB) has drawn up a payment relief assistance plan to support their customers who foresee difficulties in restarting their regular payments come October. It will provide payment flexibility according to your current financial situation, such as if you’d lost your source of income or had to take a pay cut.
HLB’s payment relief assistance plan will be provided as follows:
You will be given a moratorium extension of three months for all your loans, including term loans that have been converted from your credit card balances. And just like current six-month moratorium, no additional interest/profit will be charged. HLB will also reach out to you to reassess your financial condition before the end three-month extension to determine if you require further aid.
Here’s a breakdown of the aids provided according to the types of loans that you have:
|Types of loans||Types of financial aid|
||Reduce your monthly instalment payments by 25%, 50%, or 75% for six months, commensurate with your pay cut or financial situation. The tenure of your loan will also be adjusted accordingly.|
||Convert your overdraft/cashline-i amount to a term loan.|
HLB also clarified that unlike customers who are given the 3-month moratorium extension, interest/profit will be charged on the deferred amount for this group of customers who take up the above payment relief plans.
That said, HLB emphasised that the assistance provided are individualised and can be adjusted to suit each customer’s financial situation. The bank will first assess your financial condition, affordability, and account status before coming up with a suitable plan to match your needs.
HLB noted that it will continue to offer its credit card customers the option to convert their outstanding balances into a term loan until 31 December 2020. This measure had previously been rolled out together with the ongoing automatic moratorium back in April 2020. You can convert your balances into smaller instalments at the interest rate of 13% p.a. for 36 months.
During your application for the payment relief assistance plan, you will be required to declare your current income, employment information, and nature of cashflow impact. As such, you may want to prepare relevant documents in advance, such as your letter of retrenchment or reduction of salary.
In its FAQ, HLB also noted that it will contact the applicants within 5 working days once it has received their applications. Following that, the bank will send you an SMS notification or email to inform you of the status of your application, although HLB did not state how long the process will take. The bank further reminded that the payment relief assistance plan will not impact your Central Credit Reference Information System (CCRIS) rating, provided your account is less than 90 days in arrears.
Meanwhile, customers who are ready to restart their repayments in October 2020 can resume doing so, although there may be changes to the tenure of your loans to let you clear your deferred instalments or accumulated deferred interest. HLB said that it will notify you of the revised details before 1 October so that you can resume your payments with ease.
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