Can borrowers opt out of the loan moratorium?

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Borrowers Can Opt Out of Loan Moratorium and Resume Scheduled Payments

Yes, borrowers have the option to opt out of the loan moratorium and resume their scheduled payments according to their existing loan agreements. To do so, they must inform their respective banking institutions. Banks are required to provide these borrowers with a reasonable period to regularise any outstanding payments that were deferred under the moratorium.
Resuming Original Payment Schedules

Individuals with hire-purchase loans and fixed-rate Islamic financing who wish to exit the moratorium can inform their banks. Upon notification, they will be expected to restart their payments as stipulated in their original loan contracts. Banking institutions will provide clear details regarding the revised payment schedules and any adjustments to payment amounts, including accrued interest or profit rates during the moratorium period.
Grace Period for Deferred Payments

For borrowers who choose to opt out, banks will offer a reasonable timeframe to settle any payments that were postponed due to the moratorium. This allows customers to manage their financial commitments without immediate pressure to clear the entire deferred amount. The terms for regularising these outstanding payments will be agreed upon between the borrower and the bank.
Prohibition of Late Payment Charges

Bank Negara Malaysia (BNM) has emphasised that banking institutions are prohibited from imposing overdue or late payment charges on deferred amounts until these payments become due according to the newly agreed-upon revised payment schedule. This ensures that borrowers who opt out are not penalised for the deferred period itself, provided they adhere to the revised payment plan. Customers are advised to consult their bank's website or contact their call centres for further clarification.

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Can borrowers opt out of the loan moratorium?

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