The Issuers are given 7 days grace period to make the payment from the date that the payment is due. If the full payment is made after the grace period, a late returns of 0.1% per day from the outstanding payment amount will be charged. The compensation is charged to prevent the issuer from making payment more than 7 days from the due date. There will also be additional charges for late payment on top of the compensation incurred.

E.g. You’ve taken up financing of RM1,000 at 12% p.a. into a 4 month financing term, due on the 1st of the month but then you only repays on the 12th of the month, you will have to pay RM250 in principal, RM10 in returns and RM2.86 in compensation (0.1% x 11 days x RM260)