So you’ve probably heard all about the PN government’s RM250 bil economic stimulus package, designed to
save Malaysia’s economy reduce the financial damage that COVID-19 and reduced oil prices will do to Malaysia’s economy.
(Well, it’s actually just RM25 bil in direct injection. You MakCik Kiahs aren’t getting that much. The loan deferments you still have to pay later and the EPF withdrawal is YOUR OWN MONEY, but I guess RM250 bil in total is *technically correct*, so let’s go with that.)
— 🇲🇾Astro AWANI🇲🇾 (@501Awani) March 27, 2020
Regardless of the creative accounting, fact is that a lot of money will be freed up now, which can go back into the economy. Some of you will be getting a combination of the one-off financial assistance,
Some of you will choose to withdraw your EPF money, up to a maximum withdrawal of RM500 per month. Some of you may get your credit card balances restructured into term loans (36 months at 13% per annum). Some of you may be eligible for insurance/takaful deferment (not automatic, T&C applies, must apply).
Significantly, many of you will be getting your loan payment(s) deferred. Assuming you have a mortgage and a car loan, that’s at least, what? RM1500 in freed up money every month?
The moratorium is applicable to all Malaysian Ringgit-denominated loans/ financings held by eligible customers that have not been in arrears for more than 90 days as at April 1.
For individual customers, eligible Islamic and conventional products under this moratorium include ASB financing, home financing, auto financing and personal financing (express cash, cash plus loan and Awam-i) and for SME customers, the moratorium applies to all existing term loans/ financings and industrial hire purchase.
(side note: should you defer loan payments or continue to pay? Read here. )