AEON Credit Service (M) Berhad has announced that it is offering a one-month deferment for all its loans starting today 1 April 2020. The deferment will be applied automatically to all eligible AEON Credit customers with no additional fees imposed.
AEON Credit is a non-bank financial institution, which means that it does not fall under the purview of Bank Negara Malaysia’s automatic six-month moratorium for banks and development financial institutions. Therefore, the one-month automatic deferment by AEON Credit is its own initiative to provide a temporary relief to its customers during the Covid-19 pandemic.
According to AEON Credit, all active accounts are eligible for this payment deferment, except for those that are more than 90 days overdue in payment as of 1 April 2020. The deferment is offered to AEON Credit’s objective financing, personal financing, motorcycle financing, and auto financing accounts. The deferment will not negatively affect your credit score records.
Eligible customers need not apply for the deferment as it will be automatically activated; all existing auto debit instructions will be stopped for the month of April. However, if you wish to opt out of this deferment programme, you may continue to make your payment via online transfer, cash deposit machine, or interbank GIRO, and your instalment will be reflected for the current month’s billing.
After the one-month deferment period, you will need to make payment by your May due date as usual. The repayment amount will be the same once the deferment ends as the types of loans offered by AEON Credit (hire purchase and personal loans) are on flat interest rates, unlike mortgages where interest will continue to accrue interest.
In line with Bank Negara Malaysia’s ruling on outstanding credit card balances, AEON Credit Services will also be automatically converting the credit card balances of customers who have not met the minimum monthly repayment for 3 consecutive months into a 36-month instalment plan. Meanwhile, cardholders with outstanding accounts not exceeding 2 months will have the option to join the instalment plan.
For the duration of these monthly instalment plans, credit cardholders will be charged an effective interest rate of 13% p.a., which is lower than the usual 15-18% p.a. that is usually charged on unpaid credit balances. According to AEON Credit, more information on these credit card instalment plans will be available soon.