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We will continue to pay attention to how each bank handles Pemulih six-month bank loan repayment, Which was announced last month and applies to all Malaysians. This time, we are focusing on the Public Bank, which released the details of its products in an application that is open today.

Like other banks, the company offers fully deferred instalments or 50% relief based on its Target Repayment Assistance (TRA)-both for six months+) Program. This offer is applicable to all installment payments and AITAB Hire Purchase-i car loans for individuals (B40, M40 and T20) and micro businesses, and automatically approves those who opt-in. Small and medium enterprises (SMEs) that are financially affected by the coronavirus pandemic may also apply.

It is important to remember that the suspension is not a loan exemption, so you will not get a six-month “free installment”. On the contrary, if you choose the first option, your loan term will be extended by six months, accompanied by higher interest, because the latter will continue to accumulate during the extension period.However, there are No compound interest applied.

As for the second option, the period will be extended by three months, during which the customer pays the usual installment amount. The bank did not specifically mention when the additional interest should be paid for these two situations, but it should be included in the final installment in one lump sum just like other banks.

Maybank’s hire purchase suspension option is similar to that of Public Bank-click to enlarge

like RHB with Bank of America, Public bank No example of digital extension is provided, but the plan should be the same as the Maybank example, as shown above. Of course, the interest will vary according to your loan amount, remaining tenure and agreed interest rate, so you should confirm the details with your bank before deciding to delay the instalment.

Public Bank also provides customized payment schedules, which include a six-month installment extension and a reduction in installment payments by extending the loan period up to two years. This applies to all personal and corporate customers economically affected by the pandemic, and is subject to approval in accordance with the bank’s terms and conditions and at its sole discretion.

This third option essentially means that after deferring the payment, your monthly installment will be slightly lower, but you will pay for a longer period of time. The problem is that your interest rate will also be higher, so in the long run, you will pay more for the car.

How Public Bank’s customized repayment plan works-click to enlarge

The example given by Public Bank shows that the total 9-year loan is 70,000 ringgit, the annual interest rate is 2.68%, and the monthly instalment is 805 ringgit. The borrower chooses a customized plan for the remaining three years; the RM35,575.57 still owed to the bank is effectively refinanced as a five-year loan with an interest rate of 2.91% and monthly installments of RM755, which will be paid immediately after the extension.

As shown in the table, borrowers will pay an additional RM2,070.50 due to the additional interest, which seems to be distributed proportionally, so they will not be shocked by the huge final installment. Curiously, the company also provided examples of three- and four-year extensions, even though the plan has a two-year ceiling.

Unlike previous targeted assistance provided by banks, you do not need to provide any documents, nor do you need any proof of salary reduction or unemployment.All you have to do is apply online Or manually via email (to [email protected]), account opening branch or installment payment center that issues loans, use This form.

In addition to Public Bank, banks that have announced the suspension of the Pemulih option include:



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