04/07/2021
๐๐๐ ๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐๐๐๐ ๐๐๐ ?
Many people could be asking whether they should or they should not apply for 6 months moratorium. Here are some explanation.
1) Compounded interest will be imposed means interest charged on the existing interest. If the compounded interest is calculated for the Moratorium, it is not worth to opt in for it as the total interest will be very high.
2) Individual who faced problem with their income such as loss of income, reduction of salary or etc, putting food on the table for their family is also a daily issue for them. They cannot afford to repay their instalment for their housing and car loan. For this affected category, Moratorium will able to provide them with some breathing space to reduce their financial burden.
3) Individual whose income is not affected, it is not wrong to not opting in for Moratorium. They can continue to make their instalment as per normal and it is good for our nation economy as the money keeps the financial system running.
Example of compounding interest (Year 1):
RM 500k loan, 3.1%, 35 years
Monthly Instalment RM 1,952 (interest monthly RM1,282,
principal RM670)
If no compound interest:
RM 500k loan, 3.1% = RM 1,282 (1 month interest)
6 months x RM1,282 = RM 7,692 (6 month interest)
โ ๏ธTotal loan balance after 6 months = ๐๐๐๐๐,๐๐๐
If compound interest:
1st month RM 500,000, interest = RM 1,282
2nd month RM 501,282, interest = RM 1,285.49
3rd month RM 502,564, interest = RM 1,288.77
4th month RM 503,846, interest = RM 1,292.06
5th month RM 505,128, interest = RM 1,295.35
6th month RM 506,410, interest = RM 1,298.64
โ ๏ธTotal loan balance after mora = ๐๐๐๐๐,๐๐๐
*Calculation above are for illustration purposes only.
