KUALA LUMPUR: The loan moratorium announced under the RM150 billion Pemulih stimulus package will not be interest free, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said.
Tengku Zafrul, however, said banks would waive compounded interest and penalty charges for borrowers who take up the loan moratorium.
He said the moratorium was put in place to assist borrowers in deferring their repayment to a later date and that the method of repayment as well as interest charges was "between the borrowers and the bank".
"The moratorium that we announced (in Pemulih) is the same as the moratorium we announced before - it is not interest free.
"Let's focus on what is important. The important thing is we have managed to get the banks to give the moratorium to everyone, regardless whether they are affected or not.
"That moratorium hopefully will help the cashflow of the rakyat," he told reporters during a virtual briefing on Pemulih today.
Under the RM150 billion package, a six-month bank loan moratorium will be granted to all individual borrowers and micro-entrepreneurs to help them weather the economic effects of the Covid-19 pandemic.
Prime Minister Tan Sri Muhyiddin Yassin, in unveiling the pacakge yesterday, said the moratorium would be given to all individuals, regardless of their income bracket, and would be approved automatically after application.
Meanwhile, Tengku Zafrul said according to data provided by the Employees Provident Fund (EPF), 12.4 million members would be eligible to apply for i-Citra.
Out of that numbers, 8.7 million have sufficient savings to withdraw, while 3.7 million have less than RM5,000 as stipulated.
"This is a structural issue within the EPF and over the long term, we need to help address the gap where people now need to save up for their future. But today, we are facing a major crisis so we are doing what we can to assist the rakyat who are affected by the Covid-19 pandemic," he said.
Under the i-Citra initiative, all members below the age of 55 can withdraw up to RM5,000 subject to their total combined balance in both Accounts 1 and 2.
The approved withdrawal amount will be paid for up to five months, with a fixed monthly payment of RM1000 per month subject to savings balance and a minimum of RM50.