Banks announce policies on repayment moratorium

CORONAVIRUS | On Tuesday, Bank Negara instructed banks to grant an automatic six-month moratorium on all loan and financing payments, except for credit card balances.

The order stated that the moratorium is to begin on April 1 and is aimed at easing the cash flow of small-medium enterprises (SMEs) and individuals as the nation grapples with the health and economic ramifications of the global Covid-19 outbreak.

To be applicable, it said borrowers must not be in arrears exceeding 90 days as of April 1 and the loans are denominated in ringgit.

Since then, banks across the country have announced their policies in compliance with the order by Bank Negara. Malaysiakini has compiled various banks’ policies:

Ambank

AmBank and AmBank Islamic will be offering automatic payment deferment for loans and financing for all individuals and SME customers.

Customers who wish to opt-out may just continue their regular monthly installment payments. There will be no compounding the interest or profit on loans and financing during this six-month period.

Customers with credit card facilities may convert their outstanding balances into a term loan/financing for a tenure of 36 months at 13 percent per annum, also effective April 1.

Public Bank

Aside from the six-month moratorium on loan payments to all eligible business customers, it announced there will be no compounded interest from April 1 to Sept 30, 2020.

It said for Islamic financing, the profit rates would not be compounded in line with syariah principles.

Maybank

Maybank will not compound interest for all individual, SME and non-retail or corporate customers’ loan facilities during the six-month moratorium.

The eligible products under the automatic deferment scheme for retail and SMEs include personal, mortgage, Amanah Saham Bumiputera (ASB), education and SME loans.

However, eligible non-retail/corporate customers must first submit an application for a deferment through their relationship managers or corporate bankers for approval for the non-compounding of interest to apply.

Its fixed-rate hire purchase loans already do not have compounding interest.

For Islamic financing facilities, profit rates are already not compounded in line with syariah principles.

CIMB

CIMB Bank and CIMB Islamic Bank Berhad announced the moratorium would be applicable to all ringgit-denominated loans and financings held by eligible customers.

For individual customers, eligible Islamic and conventional products include ASB financing, home financing, auto financing and personal financing (express cash, cash plus loan and Awam-i).

For SME customers, it said the moratorium applies to all existing term loans and financings and industrial hire purchase.

Interest and profit will continue to accrue on deferred loan and financing repayments that are deferred.

Interests on conventional loans will not be compounded during the moratorium period, while profit rate for Islamic financing will not be compounded in line with syariah principles.

Individual customers who choose to opt-out of the moratorium are asked to send an SMS to the bank. The SMS Opt Out details will be made available on CIMB’s website on March 31.

SME customers who wish to opt-out are advised to visit CIMB’s website to fill in the Let-Us-Call You e-form, or they may contact their relationship manager.

Credit card customers may opt in to convert their card balances to a term loan or financing at 13 percent per annum and up to a tenure of three years.

RHB

RHB will not compound interest during the six-month loan repayment moratorium for the bank’s retail as well as SME customers effective April 1.

For Islamic financing, RHB will continue to observe the principle of no compounding profit.

OCBC

OCBC Bank and OCBC Al-Amin Bank will not compound interest during the six-month loan repayment moratorium for the bank’s retail as well as SME customers effective April 1.

List compiled from Bernama

- Mkini