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What Will Happen After the Moratorium is Over

2020 has been a bumpy ride as many Malaysians continue to struggle against the Covid-19 pandemic. To lessen the rakyat’s burden, the government introduced a 6-month loan moratorium that allows us to postpone paying any monthly personal loan, mortgage, car loan or business loan from 1 April 2020. 


Now, the 6-month moratorium period is going to end soon. In this article, we will discuss common post-moratorium questions and what to do after the moratorium is over. 


In Normal Scenario

Once the moratorium ends, you will need to catch up with loan repayments and interest will continue to accrue as usual. 


In fact, you can opt-out of the moratorium at any time as soon as you are able to catch up with your loan repayments. According to the government’s statistic, the number of individual borrowers who had chosen to continue paying their monthly instalments had risen from 331,000 in April to 601,000 in July. SME borrowers who had opted out of the moratorium facility had also increased from 5,000 to 13,000 borrowers in the same period, he added.  


Extending the Moratorium


In a recent speech by the prime minister, the government is providing a targeted moratorium extension for three months to help individuals and SMEs who needed more assistance. 


For individual borrowers who had lost their jobs and were unable to find new employment, they can contact their banks to extend the grace period. Meanwhile, those who were still employed but had undergone pay cuts can also request for a reduction on their monthly instalments inline with their new salaries, depending on the type of loan. This assistance will be given for at least six months, and extensions can be given depending on the individual’s salary situation. 


"Depending on the situation of the borrower, the assistance offered includes paying only the interest for a fixed period, or extending the overall loan period to reduce monthly instalments, or offering other forms of relief until the borrower returns to a more stable financial footing," Mr Muhyiddin said. 


Use the Assistance Wisely


In order to help individuals and businesses to weather the paralysing effects of COVID-19 on the economy, the country’s banking system is estimated to experience losses up to RM1.06 billion for every extended month of the moratorium. 


Therefore, it is important for us to brace up and get back on track as soon as possible. For the next months, work on building your financial resilience by taking advantage of the moratorium. If you have some room left after settling the necessities, focus your efforts on securing your finances for a similar situation in the future. Redirect additional cash into building an emergency fund to back you up when you encounter a pay cut or pay loss. 


Get Back To the Workforce


Our team at ZOM-IN is currently working closely with our partners to provide more job opportunities. We hope this effort can help more people to return to the workforce as soon as possible, eventually gain back financial stability. 


ZOM-IN is a platform that connects young talents with excellent homegrown startups and SMEs. For those who had lost jobs due to the pandemic, let’s take this opportunity to explore job opportunities with these companies on ZOM-IN



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