NST : Defer compounding interest during 6-month moratorium by Datuk Dr Marimuthu Nadason
FOMCA fully supports the deferment of loan or financing repayments for the next six months.During the next six months, SMEs and households do not need to make their monthly fixed payments to the banks.This would be of tremendous benefits to consumers, as many are already facing job loss and diminishing incomes. Further, the fear and concern for the family is another burden weighing on the family.
Thus, the reduction of their monthly commitment will go a long way in helping many families, especially the low income but also the middle income to face this difficult health and economic crises.Families dipping into their savings to face the current crises, would have at least one less financial burden, as well as more to spend on food and other essentials.However, the interest will continue to accrue on the loans repayments that are deferred and consumers will need to honour the deferred repayments in the future.
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