YOURSAY | Loan moratorium: Pay nothing now, suffer more later

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YOURSAY | ‘Having more to pay back later will only increase the rakyat’s debt burden.’Opting for loan moratorium will cost borrowers more - Bank NegaraMalaysia Bharu: The loan moratorium will definitely increase the cost of borrowing if interest is charged during the moratorium. If interest is charged during the moratorium period, that sum will be added to the outstanding loan balance at the end of the moratorium.Depending on the type of loan, the accumulated interest when added to future accruing interest could have a compounding effect throughout the balance of the loan tenure, including the extended tenure, thereby a hefty increase in the cost of borrowing.That is why the moratorium and/or any reduction of monthly instalments will be at the expense of extending the loan tenure and will have an adverse effect on borrowing cost.This can be overcome by increasing loan repaymen…