RHB Banking Group (RHB) and Malayan Banking Bhd (Maybank) are among local banks who have offered to not compound interests during Malaysia’s six-month moratorium period. The move came after Bank Negara Malaysia announced plans to temporarily delay loan repayments in a bid to aid Malaysians during the COVID-19 crisis.
“These measures will help to ease the cash flow of individuals and SMEs and will provide the much needed breathing space for customers to re-assess their financial positions, particularly those directly affected by Covid-19”, said RHB in a statement.
RHB was also the first local bank to waive compounding interest. The bank added the moratorium will automatically be applied to all RHB Bank and RHB Islamic retail and SME customers, with the exception of loans/financing facilities that are exceeding 90 days as of April this year.
RHB Banking Group managing director Datuk Khairussaleh Ramli added that these additional measures introduced by Bank Negara Malaysia alongside the banking industry, provides a much needed relief to ease the financial burden of individuals and businesses, particularly the SMEs, during this COVID-19 pandemic.
Similarly, Maybank too will not be compounding interest for all individual, small and medium enterprise (SME) and non retail/corporate customers that are eligible for the six-month moratorium. The banking giant added the eligible products under the automatic scheme for retail and SME clients include personal, mortgage, ASB, education and SME loans.
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As for Islamic financing facilities under Maybank, profit rates are already not compounded in accordance with Shariah principles. Meanwhile, fixed-rate hire purchase loans are already free of compounding interest.
Maybank hopes that these additional measures will provide the public with much needed relief from their financial obligations and help carry them through the COVID-19 crisis.
Source: New Straits Times, RinggitPlus