What do we need to know about Moratorium (Deferment of the loan repayment / financing payment)

1 April 2020 merupakan hari yang ke-15 Perintah Kawalan Pergerakan di Malaysia dan ianya merupakan Fasa ke-2 PKP. Baru-baru ini, kerajaan Malaysia telah mengumumkan pelaksanaan Moratorium ke atas pinjaman-pinjaman peribadi dan SMEs merangkumi pinjaman perumahan, kereta, peribadi dan lain-lain tidak termasuk Hutang Kad Kredit.

What do we need to know about Moratorium?

It is a deferment of the loan repayment/financing payment for 6 months, also known as a payment holiday. During this period, borrowers/customers with loan/financing that meet the criteria do not need to make payment with no late payment charges or penalties being imposed.

Some banks may not charge the compounding interest on defer payment. What we need to do, is to contact our bank and reconfirm.

The moratorium will be implemented today, on 1 April 2020 due to COVID-19 outbreak that currently happened in Malaysia and around the world. 

👩‍💻👩‍💻👩‍💻1st April 2020 - the implementation of Moratorium will take place today. Those who agree to take the plan which is automatically implemented, can sit back, relief and restructure your financial obligations. Those who decide to continue the monthly repayment of loans, you can also sit back and continue your life.👩‍💻👩‍💻👩‍💻

✈️My 1cent point of views: (BEWARE :: This will be long and you have to take time to read and understand it)✈️

1) 🍓 I agree with one of the writer wrote and said about Moratorium. ~ Moratorium is like a breathing space. Some people would say that "it's a relief that they can save that money to make more money." I am indifferent of that. Moratorium is not a way to save money or make more money. It's not a method of saving money, but to channel the money to other important needs at this current situation. It is a relief way for those people who are in need of moratorium to restructure their financial conditions.

2) 🍓 People who really need Moratorium, take it as to minimize your debt and to have a temporary peace of mind. You have a buffer period of 6 months to breath and re-arrange you financial situations, not making money out of it. However, if you think that you can make money out of it, there are small chance that you can earn more money out of it. Some say, put it in FD or Unit Trust or Banks. The maximum profit rate you can get from FD might be 4% if you deposit it for a year. Unit trust might take longer. MLM or Skim Cepat Kaya is a NO NO and you end up losing all money you have.

3) 🍓 As i already share my point of view with some friends, credit card balance is a bad debt. Those who have a credit card balance, do take moratorium on your housing and car loan, but not to defer your credit card payment. Pay your credit card at full payment. The profit rate is still high 13% eventhough you make a re-arrangement or restructuring or convert it into a term loan.

4) 🍓 Those who does not need a moratorium, kindly do contact your bank. Do remember that, the car loan use a flat rate and it does not affect much on the repayment and extension of 6 month after moratorium. However, the housing loan, regardless weather it is conventional or Islamic, although some of the profit rate is fixed especially on Islamic financing, do not forget the BLR/BFR. Base Lending Rate or base Financing Rate will be changed based on Overnight Policy Rate (OPR). However, bear in mind that BLR/BFR rates are not controlled by BNM, but are specific to individual banks. When the period of moratorium is over but the economic crisis still occurs, we might experience a slight increment in our monthly repayment because of the increase of BFR/BLR.

Now, at this current situation the BFR/BLR is low based on OPR. Early this year, i receive a notice from bank informing that the monthly payment for my home financing is slightly lower than before. It's actually a relief, that i can save that money and put it under emergency fund for future.

✈️So, now...What we can do within this 6 month of BREATHING PERIOD? This is solely my personal opinion and it does not refer to any particularly human being on earth, unless they are human being in pluto or other planet :))✈️

1) 🍭 Sit back and review your financial commitments. If you have families and your wife/husband is working - then PLAN together. Jangan biarkan ketua keluarga sahaja atau kementerian kewangan dalam famili sahaja yang memikirkan solusinya. RESTRUCTURE! - that's the key word. Yang bujang tu, pandai2 lah sendiri ya untuk uruskan kewangan. If your are not able to manage your own financial, then you are in a BIG TROUBLE!

2) 🍭 Go through all your commitments - LOANS / HUTANG housing loans, car loans, credit cards, personal loans, business loans, hutang ahlong, friends debt etc. YOUR basic EXPENSES - food for families, basic necessities such as utilities, hp bills, astro bills etc. However, in my opinion, entertainment is not a basic necessities. Instead of subscribing monthly, you can have a one time charge on android TV, IPTV or others. #jangankecam

3) 🍭 First thing first - PRIORITIZE. Mana-mana yang bukan essential, try to eliminate it so that you can have extra to support other needs.

4) 🍭 Plan ahead for another 6 months - we never knew what will come after this. The IMF has predicted and announce that there will be World Economic Recession after this pandemic. Those countries who recover faster from COVID-19 pandemic will have more positive chance to have an economic recovery faster than other countries. We hope Malaysia will recover faster and soon. Do remember that we had an economic crisis in 1998. I was in final year and graduated in 1999. There are not many jobs offered and life is hard, but surviving. Macam-macam kerja buat masa tu, jadi kerani, kerja di 7-eleven and others. Kelayakan Degree masa tu semua letak ketepi. Yang penting survive. I do not know how teenagers or graduates nowadays can survive. However, i believe that, as long as they have a survival skills, proper attitude, hardworking, InsyaAllah, they will past the test of hardship in life.

5) 🍭 Keep cash in hands for emergency use. However, try to avoid having more cash in hands. Nowadays, we can pay through eWallet such as TnG eWallet, Boost, Aeon Wallet and others. Cash can be use for emergency use if you need it.

6) 🍭 Dont forget to keep cash in Banks. This is important for survival in the next 6 months if possible. Those who have fix monthly wages, you can still make a reserve for 6 months ahead. For those SMEs or business, the 6 month reserved fund is crucial and important and need to take into account when you first building up your business.

7) 🍭 Dont forget to pay your insurance premium. Some Insurance company allow you to make deferment for 3 months like PRU BSN did. However, it is limited to those who affected with COVID-19, who got retrench / lose their job and other terms. Please contact your Insurance agent for that. Every Insurance company has different terms and cons. Do contact them to get more info.

8) 🍭 Hold or defer any unnecessary buying or expenses. As much as you want to or you are dying to have it, now is the time to pay attention only on basic needs.

9) 🍭 In this times of hardship, it is good if we can put aside some of our earnings for sadaqah. Those who have monthly income walaupun tak banyak, try to put RM1, or RM5 a day or week or month, or any amount to give to unfortunate groups. Those money or rizq we have, some of it might belong to others. So, give it out and believe that Allah will give us more, InsyaAllah.

I thinks, I have given my "1centviews". Hope it helps me and others who read it. If it helps you too, don't forget to 👥SHARE it with others.👥

🥰Thanks All.🥰

#spreadpositivity #positiveideas #livetoinspireothers #livetoinspire

💰 For more financial tips / pengurusan kewangan, 💰you can check it out on my Blog at https://mymotivations.blogspot.com/search/label/Kewangan

Although i have not been updated the section lately, but the tips are relevant to follow and read at all time especially during this hard time.

📜 Happy reading and hopefully it will be beneficial to you and others too.📜