Zafrul wants all banks to be on the same page as some don't charge accrued interest while others do. — Bernama

KUALA LUMPUR: Finance Minister Tengku Datuk Seri Zafrul Aziz has proposed that accrued interest or profit imposed by financial institutions on hire purchase customers be waived during the six-month moratorium period.

He said there were banks that offered the loan moratorium without charging accrued interest or compounded interest on the loans.

"Considering that there is a possibility that this can be implemented and after listening to the people's demand, I would like to recommend that all financial institutions, especially those that are involved in offering the moratorium to consider waiving the accrued interest (for hire purchase loans) or profit (for fixed-rate Islamic financing loans) during the six-month moratorium," he said in a Facebook post today.

Tengku Zafrul said the issue was under the purview of the Bank Negara, but the ministry had taken a proactive step to discuss with it, as well as the banks, for a decision based on the people's needs.

"We, at the ministry, are ready to collaborate with Bank Negara and the banking sector to ensure the implementation of the proposal.

"I hope that this view can be considered by Bank Negara and the financial institutions in the country," he said.

Tengku Zafrul said recently the mass media and people had raised the issue, and there had been confusion over the interests.

Bank Negara had stated on Friday that hire purchase loans would continue to be charged interest or profit during the moratorium period.

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