HomeNewsDelay your car loan payments for 6 months from 1 April 2020

Delay your car loan payments for 6 months from 1 April 2020

Bank Negara Malaysia (BNM) has announced on 25 March 2020, several measures including a six-month loan moratorium (deferment) to assist individuals, small medium enterprises (SMEs) and corporations during and after the Restricted Movement Order (RMO). These measures allow banking institutions to remain focused on supporting the economy during these times and provide some flexibility to the customers. Although loan payments have been deferred for six months, you can renew your expired car insurance via Carsome and our partner Kurnia Insurance on our website.


What does this mean?
The terms and conditions of the temporary deferment or suspension of loan repayment for six months beginning 1 April to 30 September 2020 apply to individuals and SMEs for conventional loans including hire purchase/car loans. During this six months period, customers with existing loans will not need to make any repayments and no late payment charges or penalties will be imposed. This deferment does not include credit cards.


Do I need to apply to qualify for the deferment?
No applications are needed. However, loans and financing that automatically qualifies for the deferment are those which are not in arrears (overdue) exceeding 90 days as of 1 April 2020. BNM has mentioned that this is to help those who are facing financing difficulties to cope with the challenges ahead.


Are there additional interest charges on the repayment amount deferred by six months?
BNM has stated that interest for conventional loans will continue to be charged on the outstanding balance – principal and compounded interest during the six month deferment period. However, some banks may decide not to compound interest during this period. Customers are advised to look out for notices from their respective banks on the deferment package.


Does the deferment affect interest payments by an increase in monthly payment or a longer term?
Customers are advised to consider the payment options proposed by their bank on how to resume payments after the six month period. This may include a higher following installment amount while maintaining the original loan term, or an extension of the term after the six month period.


What happens if I have a loan under an auto-debit arrangement?
The bank will stop debiting your account during the six months deferment. However, if you wish to opt-out of the deferment and wish to continue paying your loans, you will need to inform your bank.


Will this deferment affect my CCRIS (credit report) record?
No, it will not be affected during the deferment period. The status will remain as of March 2020 throughout the six months.


What would my car loan financing monthly payments look like before and after the six months deferment period?


Monthly installment BEFORE deferment Monthly installment AFTER deferment


RM756 – no change
If tenure post-deferment extended 6 more months

This example is based on a fixed rate hire purchase loan, with these assumptions:

  • Loan amount – RM60,000 with an interest rate of 4%
  • Original tenure – 9 years with 3 years repaid by the customer
  • Outstanding loan amount before and after the deferment period – approximately RM54,400
  • No additional interest charged during deferment


Read below for more stories!

If you are an e-hailing driver, passenger or food delivery rider, follow these Covid-19 safety tips to keep yourself safe during this period.

Be safe and follow basic protective measures against Covid-19.

Practice good hygiene and social distancing when you are out in public.


If you are looking to sell your car, you can now schedule bookings with Carsome from 5th April 2020 onwards for free inspection slots beginning 15th April 2020.

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