6 May Update – No Additional Interest Charges on Hire Purchase for 6 months

After a several U-Turn since MCO started, Malaysia Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz announced banks have now agreed Not To Charge the additional interest or profit charges imposed on instalments for hire-purchase loans for the six-month moratorium.

Borrowers are therefore required to resume paying their instalments as usual, based on the terms of agreements with their respective banks including with an extension of six months in the repayment period, if they chose to take up the moratorium.

Malaysians were caught by surprise when the news of additional interest can be charged by the banks last week which contradict the first announcement by the prime minister. Netizens flooded Finance Minister social media with #bankerjagabanker hashtag in protest.

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Affin Hwang Capital named the four banks with the highest exposure to HP loans: Public Bank Bhd, Malayan Banking Bhd, AMMB Holdings Bhd and Hong Leong Bank Bhd

  • Public Bank HP loans – 15.7 per cent or RM51.77 billion of its total outstanding loans as at end-2019.
  • Maybank HP loans – RM49.9 billion or 9.5 per cent of Maybank’s total outstanding loans in Malaysia of RM523.49 billion as at end-2019
About Tommy Ooi 509 Articles
Luxury Hotel Reviewer & Destination Blogger. Passionate for travel, exploring new culture & indulging divine food, Tommy has traveled to 42 countries & 140+ destinations.

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