To help Malaysians tide the wave, the government has introduced the Pemulih package worth RM150 billion:

Although that may sound like a relief to some, we should always check the fine print before agreeing to anything, especially the six-month loan moratorium offered by the banks.

There would still be interest

The Minister of Finance, Tengku Datuk Seri Zafrul Abdul Aziz, announced that the loan moratorium offered under the Pemulih stimulus package will not be free of interest, New Straits Times reported.

The moratorium was introduced to help borrowers defer their loan repayment to a later date, but the interest charges as well as the method of repayment 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," Zafrul was quoted as saying.

He added that the government hoped the moratorium will help ease the cashflow of the rakyat, especially those in need of some cash.

However, Zafrul said that banks have been told to waive compounded interest and penalty charges for borrowers who choose to take up the loan moratorium.

"Report and complain if the banks raise a compound (interest) and charge a penalty," he was further quoted as saying.

Open for all

Under the Pemulih package, a six-month loan moratorium will be granted to all individual borrowers and micro-entrepreneurs, regardless if they are from the B40, M40 or T20 groups.

No documentations or proof of loss of income are needed this time around; borrowers will only need to apply and the banks will automatically approve the moratorium.