BNM’s ‘oversight’ leads to additional step for hire purchase loan moratorium

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The latest change in procedure for the six-month loan moratorium for hire-purchase (HP) agreements appears to be due to an oversight by Bank Negara Malaysia. Following its March 25 announcement on “automatic” moratoria on all loan and financing repayments, the central bank announced today that additional documentation will be required to defer HP and fixed-rate Islamic financing repayments. In a statement late tonight, it clarified that borrowers of these two types of loans will “not need to apply” for the deferment but will need to “complete the documentation required to give legal effect on the moratorium”. “The statement today is to address procedural issues which will give legal effect to the moratorium in accordance with the Hire-Purchase Act 1967 and Shariah requirements,” Bank Negara said. For HP loans, this retrospective procedure addition was due to an “oversight” of the …