If it… Read more », Question 1:If we opt for Option 3, must we speak to our bank officially n inform them to recalculate our higher installments without affecting the tenure. In addition, Etiqa Insurance Singapore has introduced Financial Assistance Benefit for COVID-19 to all insured persons* of life protection and insurance savings plans. document.write( '' ); Let’s break down how each of the three options above will affect you and your wallet in the long term. What if I took a housing loan for a property which is still under construction i.e. Thank you. In the explanations below we will continue to use the example of a RM500,000 outstanding conventional home loan at 4% interest p.a. But remember, this isn’t free money – this is the amount you’d have to spend for your home loan. The total additional interest charge for this option is RM33,866.34. Is that right? Eligible policyholders can approach Etiqa to apply for this arrangement if your policy commencement or renewal date falls between 1 October 2020 to 31 March 2021. My Bank is saying no as it’s credit card related. Can you explain more if my housing loan is a flexi loan? For repayment Option 3, this interest is added to the outstanding principal at the end of the deferment period, and treated as “new outstanding balance” from October 2020 onwards (ie RM510,000.02). The Editor. By right, the repayment amount monthly should follow outstanding balance in the account. Tq. Will I need to pay more interest/profit after the moratorium period is over? What are the assumptions used for this calculation? How about flexi loan? Make reduced instalment payments pegged at minimally 60% of your monthly instalment for a period of up to 9 months or till 31 December 2021, whichever is earlier. Also, plse advise me maybank email address to query on this. The exception to this is of course Islamic financing plans, where profit cannot be made from profit. Good job. The scheme is available to all SMEs including sole proprietors and partnerships, with: You may apply to Maybank from 2 November 2020 onwards via an online form. For Maybank Premier customers, please reach out to your dedicated Relationship Managers or contact us at 1800-536 7888 (Local) or (65) 6536 7888 (Overseas). During this period, you will accumulate a higher interest charge (because of the added 6-month interest). This deferment frees up RM2,390.52 each month from their monthly commitment, which can mean having food on the table, buying schoolbooks for the children, not defaulting on a loan, and overall, alleviating immense financial stress. Thinking of applying for a personal loan? At a time when job security is non-existent in Malaysia and across the globe, the decision to offer no penalties for not paying off a substantial monthly commitment is welcome news indeed. You still accrue 6 months of interest on the outstanding principal, which will negate any benefits you may get from reducing the principal this way. Maybank announced that it would offer a six month moratorium on instalment payments for loans and waiver of certain charges … This is because the interest follows a flat rate basis, and since the principal sum does not increase, you will enjoy a true “payment holiday” with no implications from today until the end of September. Interest will no longer accrue for hire purchase agreements for both conventional and Shariah variants, with no further changes to their agreements with the exception of an additional six-month extension to the tenure. Just like hire purchase agreements, personal loans and personal financing follow a flat-rate basis for the interest/profit rates. Social distancing measures such as reducing the number of customers in the branch at a given time and spacing out queues and seats. Loan period of up to 7 years. Thank you for the kind words. Customers can also visit the Ministry of Health website (www.moh.gov.sg) for the latest updates. Won’t the principal affect the total interest you need to pay at the end of the day? For Option 1, if monthly repayment amount remains unchanged, isn’t the loan tenure be extended for 6 months? If you are struggling to make your loan repayments, Malayan Banking Bhd (Maybank) is now providing three options to apply for post-moratorium assistance packages before the existing six-month COVID-19 moratorium … So if I opt for the moratorium, but still repay the same amount each month into the account, technically my outstanding is reduced more (hence even interest calculated should be less) as my full repayment goes into reducing outstanding rather than used up for interest. It is basically saying that you do not need to meet your monthly loan payments for that amount of time, and will not be penalised for it. To summarise, here’s a table to show the possible repayment options after the deferment period, and how much additional interest will be charged as a result of the deferment: *Update 6 Apr: Fixed error on Option 1 (loan tenure should be +6 months). We encourage clients to make use of the video conference wealth advisory whenever possible. if i opt for deferment and i put the money in ASB for more than 10 years and opt for extended 6 months repayment period would it be better.? ), (Update 30/4/2020 8pm: To reflect BNM and ABM’s announcement to amend the moratorium for hire purchase and fixed-rate Islamic financing, we have removed our recommendation for both types of loans. The new monthly repayment amount will be RM2,459.88 until the end of the loan – RM69.36 more than your old repayment amount. … That’s because the six-month interest is added to the principal, which means you now have a higher amount to repay over 30 years. Does that work out better? You are required to check-in using SafeEntry and undergo temperature screenings before entering all Maybank branches and premises. : Copyright © 2020 Maybank. Are we still paying interest during the deferment period? If you are unable to access video conferencing, please make an appointment with us. Note, also, that all banks are saying that they will not compound interest “during the deferment period” – none of the FAQs say that there will be no interest compounding from October 2020 onwards. As part of COVID-19 Relief Package, from 8 July 2020 till 30 June 2021, the monthly minimum payment for Maybank Personal Credit Card and Fund Transfer accounts will be reduced from 3% to 1%* of outstanding balance or S$20, whichever is higher. I’ll update the table for clarity. However, you may apply to restructure and reschedule foreign currency-denominated facilities, which may include payment/repayment moratoriums. Hope that helps! All other loan repayments are no more than 30 days past due. 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