Due to Covid 19, Malaysian government decided to give loan moratorium for 6 months starting April till September 2020.
The moratorium applied to all banks under Bank Negara Malaysia and for individuals and SME who have housing loan, car loans or business loans. The moratorium will accrue all profit/interest from the loan.
At same time all commercial banks decided not to compound the interest accrued during this 6 months.
The moratorium is to ease financial burden to all affected Malaysians.
Let say we decided to take the moratorium. I would like to analyze for housing loan only.
So what we shall do the additional fund from the 6 months moratorium?
1) Use it if you really need it
2) Save it for emergency fund
3) Use it, to reduce your loan principal
Use The Saving from 6 Months Moratorium to Reduce Your Loan Principal
I would like to simulate what is the best way to reduce your principal. Options available as follows:
1) Use the accumulated fund to pay the principal by the end of moratorium
2) Use the monthly installment to reduce principal on monthly basis
Loan Amount: RM100,000
Tenure: 30 years
Interest: 5% per annum
Monthly Installment: RM536.82
If no moratorium, the principal should be RM99,272 based on the amortization table.
1) Use the Accumulated Fund to Pay Principal by The End of Moratorium
Profit / Interest (RM)
After 6 months:-
The accrued profit / interest: RM2,500
The accumulated fund saved from the monthly payment is: RM3,220.92
2) Use the Monthly Installment to Pay Principal On Monthly Basis
Profit / Interest (RM)
After 6 months:-
The accrued profit / interest: RM2,466.45
The accumulated fund saved from the monthly payment is: 0
Which Option Is Better?
Amount after 6 Months (RM)
Comparison vs Do Nothing
Do nothing - principal amount based on normal amortization
Use the accumulated fund to pay the principal by the end of moratorium
Use the monthly installment to reduce principal on monthly basis
There is not much difference in term of principal reduction.
Option (2) Use the monthly installment to pay principal on Monthly Basis is marginally better where it can reduce principal by 0.03%
How It Is Calculated?
Use the accumulated fund to pay the principal by the end of moratorium:
RM99,279 = RM100,000 (principal) + RM2,500 (accumulated interest) – RM3,220.92 (accumulated fund during 6 months moratorium)
Use the monthly installment to reduce principal on monthly basis:
RM99,246 = RM97,315.90 (principal on month 6) – RM536.82 (assuming reduce principal before starts interest charging from month 6 installment) + RM2,466.45 (accumulated interest)
Recently, I bought shares using Maybank Stocks Online Trading Platform. After purchasing the shares, I didn’t know how to pay for my purchases.
When I googled, I coudn’t find any useful help or information on how to make payment of my outstanding purchases. At the end, I had to make a call to Maybank call centre and get help.
According to Maybank, I must contact my stocks dealer to settle the payment via Maybank2u and my stock dealer informed me step by step on how to do it.
Before follow my steps, better call your dealer first. If you don’t know or remember your dealer phone number, you can contact Maybank help line (03 2297 8888) and they will provide you the dealer name and contact.
Steps to make payment on Outstanding Purchases
Login to Maybank2u
Select Pay & Transfer
Select New Payment
Select Maybank Investment Bank Berhad
Enter your trading account number in “Trading Acct. No.”
Enter your “Bill Reference No.”. Fill in:-
TRUST – you will be transferring your money in Maybank Investment Bank account. (your trust account will be tagged with your trading account)
Inform your dealer and share the receipt.
Remember to check that your Outstanding Purchase is cleared after the payment.
I did my own comparison between the most popular e-commerce platform in Malaysia, Shopee & Lazada.
At first I like Lazada thanks to its smooth user interface and good delivery. But in one of my purchase I got issue with the seller and I’m unable to contact Lazada. Lazada is like a total AI platform without people interaction.
While Shopee is more human platform because you can contact Shopee and get replied from a human agent.
Thumbs up means it a win over its competitor while thumb down, the platform loses to its competitor. But it doesn’t mean if thumb down it is not worthy or reliable.
It is my way in making easy evaluation.
Below is my comparison and with it details comparison.
My preference is buying at Shopee if I can’t find an item at Shopee or I find that it is cheaper at Lazada then only then I proceed buying at Lazada.
Cancellation by Buyer
Shopee still allows buyers to cancel order even after the item has been packed and on the way for delivery.
You just need to click cancel and choose the cancellation reason.
So far I have done 2 cancellations due to sellers unable to deliver on time. I got the full refund without problem.
Cancellation by Shopee System
Shopee also will cancel an order, if they find some problems with the seller delivery or the seller himself.
I also received full refund when order is cancelled by Shopee system. Unfortunately Shopee doesn’t notify you via email or gives any discounts like Lazada.
Cancellation by Users
I never able to cancel my order in Lazada because there is no option to cancel after the order is packed even though it is very late in delivery.
Lazada only mentions we can reject the order by rejecting it at door step which is impossible to do because most of the time you are not at home when the item arrives at door step.
Cancellation by Lazada System
Fortunately Lazada will auto cancel an order and gives full refund if the order is late for delivery.
At same time Lazada will notify you via email on the cancellation and gives you discount voucher of RM4 valid within 60 days.
At Shopee, you earn Shopee coins when you buy at Shopee and when you give rating of your purchased items.
You can use the Shopee coins to get discount for your future purchases.
While Lazada, it doesn’t have its own loyalty program. It leverages on BCard. Whenever you complete your order payment, you can insert your BCard numbers.
Orders Summary Delivery Status
Shopee tracking goods depends on logistics company use to deliver the item. J&T Express gives details information up to their delivery boy phone number for you to contact them directly.
While Pos Laju will give only summary info.
Due to non standardized information from different logistics companies, it is hard for to really understand meaning of each information.
Shopee doesn’t notify you via email if the items are shipped out.
It will notify you via its mobile application.
At same time, the dispatcher will call you the check whether you at home or no. If not, he would just put it at your mailbox. But I notice, this is not standard practice. It is more depending on the dispatcher.
Orders Summary Delivery Status
Lazada has good standardized tracking goods information regardless logistics companies used for the delivery.
It also will auto refund your money in case the item is not delivered within stipulated time.
Lazada will email you, once the item is ready to be shipped out. It means either by today or tomorrow the item will arrive at your home.
When the item is delivered, it will send another email notification.
Besides the dispatcher will WhatsApp you directly informing that he already delivered the item.
Whenever you pay using credit card, Shopee will ask TAC to authorize the payment.
If you already save your credit card information in Lazada system, whenever you pay using credit card, Lazada will not ask for TAC to authorize the payment.
Shopee does have email support and I sent few emails and I got replied in within 1 business day and it solves all my problems.
It also have FAQ but sometimes hard to find the information you want but luckily Shopee has the email support.
So far Shopee doesn’t have Live Chat support.
Surprisingly Lazada doens’t have email support like Shopee.
Lazada also has FAQ and its FAQ have images to make you understand better.
Lazada has interactive Live Chat. It is not live chat between you and customer service agent but it is more like FAQ section with interactive interface.