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All Malaysian Banks Have Declared Non-Compounding Interest For Moratorium Loan & is Automatic.

Updated: Apr 4, 2020



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.


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