Bank Negara Malaysia (BNM) has put a six-month moratorium on the repayment of personal loans and financing. This means that all banks will offer an automatic postponement of loan payments of six months.
Here’s what you have to know about this initiative:
Eligibility. Only applies to ringgit-denominated loans that are not in default exceeding 90 days as at April 1. Does not apply to credit card debt.
Automatic. You do not have to apply for this, as it is automatic. If you do not want to defer your loan payment, contact your bank.
Period. Until September 30, 2020.
Interest payments. No late payment interest or charges, but your interest charges will accrue.
Credit score. This will not be classified under CCRIS as a loan deferment.
It’s important to note that your interest will still accrue during the moratorium period, for all banks. In addition, interest charges for some loans may be compounded.
But compounding interest/profit does not apply to Islamic financing facilities, as per Shariah law. Many banks have also stepped forward to say that the interest on their loans during the moratorium will not compound:
Bank Interest/profit
Affin Bank = Non-compounding
Alliance Bank = Non-compounding
AmBank = Non-compounding
CIMB Bank = Non-compounding for ASB financing, home financing, auto financing and personal financing and loans/financings and industrial hire purchaseCiti MalaysiaNon-compounding for mortgage and personal loans
Hong Leong Bank = Non-compounding
HSBC = Non-compounding
Maybank = Non-compounding for individuals, SMEs and non-retail and corporate customer loan facilities
Public Bank = Non-compounding for individual and business customers
OCBC Bank = Non-compounding for mortgages and SME loans/financing
UOB Malaysia = Non-compounding
RHB Bank = Non-compounding
Standard Chartered = Non-compounding
Prior to BNM’s announcement, banks have also declared other types of assistance for affected customers:
Bank - Date announced
● Assistance
Affin Bank and Affin Islamic Bank - March 19
● Retail: restructuring and rescheduling of financing facilities ● SME: special relief fund
Agrobank - March 19
● SME: restructuring and rescheduling of financing facilities
Alliance Bank - February 13
● Loan restructuring and rescheduling for up to six months ● Waiver of late charges for loans or financing
AmBank - March 23
● SME: Special Relief Facility (financing of up to RM1 million)
Bank Islam - February 11
● Retail/SME: monthly instalment payments of financing of up to six months
CIMB Bank and CIMB Islamic Bank - March 18
● Retail: restructuring and rescheduling financing programmes ● SME: Special Relief Facility (financing of up to RM1 million)
Hong Leong Bank and Hong Leong Islamic Bank - March 19
● Retail/SME: restructuring and rescheduling loans/financing will be considered ● SME: Special Relief Facility (financing of up to RM1 million)
HSBC Bank and HSBC Amanah - March 18
● SME: extension of trade loans/financing payment period for 30 days
Maybank and Maybank Islamic - February 11
● Retail/SME: restructuring and rescheduling of financing
MBSB Bank - March 19
● Retail: restructuring and rescheduling of financing ● SME: can apply for financing restructuring and rescheduling
Public Bank and Public Islamic Bank - March 19
● Retail/SME: can apply for financing restructuring and rescheduling
OCBC Bank and OCBC Al Amin Bank - February 13
● Retail/SME: provide relevant assistance to affected parties on a case-to-case basis
RHB Bank and RHB Islamic Bank - March 18
● Retail/SME: restructuring and rescheduling of financing
SME Bank - March 16
● SME: can apply for temporary relief ● SME: Special Relief Facility (financing of up to RM1 million)
Standard Chartered and Standard Chartered Saadiq - February 13
● SME: can apply for interest-only payment option
To apply for a moratorium, restructuring or rescheduling of your loans, contact your bank by phone or visit their respective websites.
For those of you who are still curious about the BNM moratorium, please refer to the original statement and the official FAQ.