Letters: I Refer to the recent debate on whether or not to extend the loan moratorium.

While there are pros and cons to an extension to the moratorium, in my opinion, it is more important to ensure that the original moratorium is implemented fairly — a six-month deferment granted to all loans as promised.

Currently, there are loans that are left out of the original moratorium and received no financial relief at all. One example is cash loans that are linked to credit card.

These are loans with a fixed interest rate, a fixed tenure and a fixed monthly instalment. Essentially, the loan structure is similar to a typical car loan. Banks call up their credit card customers and offer these products as a "cash loan".

"Cash loan" is the term that banks' sales personnel use when selling these products. If the customer accepts the offer, a new account is created for this loan. For unknown reasons, banks make it such that these loans somehow share the same credit limit with credit cards.

I have contacted the banks concerned and am shocked to learn that the aforementioned loans are not included in the loan moratorium, hence repayment has to be made as per the original schedule.

I think this is very unfair as the monthly instalments are a huge burden on borrowers who are struggling to survive, just like borrowers of housing loans, hire purchase loans and personal loans.

It is a financial commitment that is difficult to meet given our present situation, with greatly reduced income due to the Movement Control Order.

According to the frequently asked questions (FAQ) published on the Bank Negara Malaysia website, the automatic six-month deferment is applicable to all credit facilities with scheduled or contractually due payments.

This type of loan is indeed credit facilities with scheduled or contractually due payments, and therefore meets the criteria published by Bank Negara Malaysia, yet the banks refuse to honour it.

Moreover, according to the FAQ, even share margin financing qualify for the automatic six-month deferment. This means borrowings for investing (or speculating) in the stock market qualify for the six-month deferment.

What, then, is the rationale for excluding cash loans that are linked to credit card from the loan moratorium? I seek Bank Negara Malaysia's consideration to intervene and direct the banks to include this type of loan in the automatic six-month deferment programme.

This is important to ensure that borrowers get the financial relief to ride out this difficult period without falling into insolvency.

Disappointed Borrower

Petaling Jaya, Selangor