Malaysia Banks to Waive Off Accrued Interest on Hire-Purchase Financing

The Finance Ministry in Malaysia has stated that the banking industry will not impose accrued charges on hire-purchase financing, inclusive of both conventional and Shariah, throughout the tenure of these agreements. This implies no additional charges to borrowers from compounding and interest during the six-month moratorium from April to September 2020.

Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, said that the Government of Malaysia hopes that this decision, which was reached in discussion with the banking industry, will help ease the burden of people during this challenging time.

Zafrul Aziz added that borrowers would need to continue making their loan repayments b...