(Last update: 1 April 2020, 3.40pm to include FAQs by banks.)
With Malaysia going into an extended period of movement control order (MCO) that will last until 14 April 2020, Bank Negara Malaysia (BNM) has announced an automatic moratorium for all individual and SME loans for a period of six months. This aid, which is set to take effect from 1 April 2020, is aimed at helping customers to help them ride out the adverse economic effects of a worsening Covid-19 pandemic situation within the country. It excludes credit card repayments, which will benefit from a separate initiative.
BNM’s automatic moratorium is supported by the Association of Banks in Malaysia (ABM), stating that, “The measures announced have been designed not only to support customers in this highly unusual global environment, but also to ensure that banks can continue to play their role in sustaining the country’s economy.” As such, banks within the country have begun working out the details of the initiative.
One concern that Malaysians have raised regarding the automatic moratorium is the issue of compounding interest. According to an FAQ released by BNM, your interest will continue to accrue on the deferred loan/financing repayments, and for conventional loans, interest will be compounded as both principal and interest portions will be charged interest during the six-month deferment.
Banks, too, are releasing their own statements to confirm if they will be compounding interests. Here’s a table to help you get a quick idea of which banks are compounding interest and which are not:
| Compounding interest | Not compounding interest |
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Aside from banks, several non-banking institutions, too, have come forward to offer payment deferments to help their customers weather through this difficult time.
The automatic moratorium is in addition to other ongoing financial assistance that banks within Malaysia have already been offering to Malaysians since early February 2020, such as the rescheduling and restructuring of loan repayments. Many business owners had begun facing challenges since then, due to the travel and logistical restrictions imposed in China where the Covid-19 pandemic first started.
Banking Institutions
Affin Bank & Affin Islamic Bank
- Moratorium of up to six months and restructuring/rescheduling of installment repayments for mortgages, hire purchase, credit cards, education financing, ASBN financing, and personal financing
- SME customers can also tap into a financing scheme by Bank Negara Malaysia, which offers a few options of financial aid, including a special relief facility for SMEs.
- With regard to the automatic moratorium, Affin Bank has announced that it will not be compounding interest on loans during the moratorium period.
- You can also check out the bank’s FAQ.
- For more information, visit www.affinbank.com.my or www.affinislamic.com.my, or email directly to respective business divisions of the bank:
- Consumer Banking: cod.support@affinbank.com.my
- SME Banking: smecare@affinbank.com.my
- Corporate Banking: corpbank.enquiry@affinbank.com.my
(Source: Affin Bank)
Agrobank
- Temporary relief measures to be offered based on business needs; it will be determined on a case-by-case basis.
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, Agrobank has announced that it will not be compounding the interest charged for its loans during the period.
- You can also check out the bank’s FAQ.
- For more information, call the bank’s customer contact centre at 1-300-88-2476 or visit the nearest branch.
(Source: The Star)
Alliance Bank & Alliance Islamic Bank
- Moratorium of up to six months
- Rescheduling and restructuring of installment repayments
- Deferment of financing servicing for up to six months
- Waiver of late charges for financing
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, Alliance Bank has announced that it will not be compounding the interest charged for its loans during the period.
- You can also check out the bank’s FAQ.
- For more information, call the bank at 03-55169988 or visit the bank’s website.
(Source: Alliance Islamic Bank)
AmBank
- Temporary deferment of loan repayments or restructuring of installment repayments
- Customers may submit applications for the bank’s available financial assistance.
- SME customers can also tap into the special relief facility for SMEs by Bank Negara Malaysia.
- With regard to the automatic moratorium, AmBank has announced that it will not be compounding the interest charged for its loans during the period.
- You can also check out the bank’s FAQ.
- For more information, call the bank at 03-2178 8888, email customercare@ambankgroup.com, or visit the nearest branch.
(Source: AmBank)
Bank Islam
- Rescheduling and restructuring of installment repayments
- Moratorium for financing repayments of up to six months
- Customers may submit applications for the bank’s available financial assistance.
- SME customers can also tap into the special relief facility for SMEs by Bank Negara Malaysia.
- With regard to the automatic moratorium, Bank Islam has announced that it will not be compounding the profit.
- You can also check out the bank’s FAQ.
- For more information, call the bank at 03-26900900 or visit the nearest branch.
(Source: Malay Mail)
Bank Muamalat
- Moratorium of up to six months for monthly installment repayments available until 31 July 2020.
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, Bank Muamalat has announced that it will not be compounding profit.
- You can also check out the bank’s FAQ.
- For more information, call the bank at 1-300-88-8787, email the bank at moratorium@muamalat.com.my or visit the nearest branch.
(Source: Astro Awani)
Bank Rakyat
- Temporary deferment of loan repayments or restructuring of installment repayments
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, Bank Rakyat has announced that it will not be compounding profit.
- You can also check out the bank’s FAQ.
- For more information, call the tele-Rakyat Contact Centre at 1-300-80-5454 or visit the nearest branch.
(Source: The Star)
Bank Simpanan Nasional (BSN)
- Temporary deferment of loan repayments or restructuring of installment repayments
- Customers may submit applications for the bank’s available financial assistance.
- Micro entrepreneurs in all business segments can benefit from the BSN Micro/i Kredit Prihatin financing facility, with a 2% rate without collateral.
- Eligibility requirement is reduced from minimum one year of operation to six months of operation
- Financing amount increased from maximum of RM50,000 to RM75,000 per entrepreneur
- Financing period: 1 to 5.5 years (with a 6-month moratorium)
- Other financial products include the special relief facility (SRF), agrofood facility (AF), and automation and digitalisation facility (ADF), offered at rates of 3.5% to 4%.
- With regard to the automatic moratorium, BSN has announced that it will not be compounding the interest charged for its loan during this period.
- You can also check out the bank’s FAQ.
- For more information, call the BSN Customer Contact Centre at 1-300-88-1900 or visit the nearest BSN branch.
(Source: Bernama)
CIMB Bank & CIMB Islamic Bank
- Restructuring/rescheduling of installment repayments
- Moratorium of up to six months
- Customers may submit applications for the bank’s available financial assistance.
- SME customers can also tap into the special relief facility for SMEs by Bank Negara Malaysia.
- With regard to the automatic moratorium, CIMB has announced that it will not be compounding the interest charged for its loans during the period.
- You can also check out the bank’s FAQs for individuals and SMEs.
- For more information, call the bank at 03-62047788 or reach out to your nearest CIMB branch officers or relationship managers.
(Source: The Star)
Hong Leong Bank & Hong Leong Islamic Bank
- Moratorium of up to six months or restructuring/rescheduling of installment repayments
- The bank has set up a “Priority Lane” process to facilitate customers applying for financial relief plan.
- SME customers can also tap into the special relief facility for SMEs by Bank Negara Malaysia.
- With regard to the automatic moratorium, Hong Leong Bank has announced that it will not be compounding the interest charged for its loans during the period.
- You can also check out the bank’s FAQ.
- Customers will need to call the bank at 603-7626 8899 or email HLonline@hlbb.hongleong.com.my to initiate all application processes.
(Source: Bernama)
HSBC Bank & HSBC Amanah Malaysia Berhad
- Rescheduling and restructuring of installment repayments
- Moratorium of up to six months for loans, mortgages, credit cards, as well as retail business banking and commercial banking
- Repayment flexibility with extension of trade loans/financing payment period for 30 days for commercial banking and global banking customers
- Pre-approved 30-day extension of trade loans/financing maturing between 18 and 31 March 2020 without additional fee or penalty rate
- Customers in need of financial assistance will need to contact HSBC to initiate the application process, as well as for a case-by-case assessment:
- Wealth and personal banking
- Commercial banking
- Global banking: Relationship and client service managers
- With regard to the automatic moratorium, HSBC has announced that it will not be compounding the interest charged for its loans during the period.
- You can also check out the bank’s FAQ.
- For more information, call the bank at the following hotline numbers from 9am to 4.45pm (weekdays):
- Credit card customers: 1300-22-2733
- Mortgage and financing customers: 1300-88-1121
- RBB Fusion customers: 1300-80-1998
(Source: The Star)
Maybank & Maybank Islamic
- Moratorium of up to six months or restructuring/ rescheduling of installment repayments
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, Maybank has announced that it will not be compounding interest for all individual, SME, and non-retail/corporate customers during the moratorium. This include personal, mortgage, ASB, education, and SME loans. However, non-retail/corporate customers will have to submit an application for the moratorium.
- You can also check out the bank’s FAQ.
- For more information, visit www.maybank2u.com.my or reach out to your nearest Maybank branch officers or relationship managers.
(Source: The Star)
MBSB Bank
- Rescheduling and restructuring of installment repayments for corporate and SME clients
- Moratorium of up to six months for retail customers
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, MBSB Bank has announced that it will not be compounding profit.
- While its FAQ does have a clause stating that the bank will be compounding interest on conventional loans, MBSB Bank has reached out to say that they are now a full-fledged Islamic bank and are no longer offering conventional loans.
- For more information, call the bank at 03-20963000 or visit the nearest branch.
(Source: Bernama)
OCBC Bank & OCBC Al-Amin Bank
- Relevant financial assistance to be provided to business and individual customers on a case-to-case basis; affected customers are requested to engage with officers-in-charge.
- Customers in need of financial assistance will need to contact and set an appointment with OCBC to initiate the application process.
- SME customers can also apply for Bank Negara Malaysia’s special relief facility through OCBC.
- With regard to the automatic moratorium, OCBC has stated that it will not be compounding the interest for its loans during the period.
- You can also check out the bank’s FAQs for individuals and SMEs.
- For more information, call the bank at 03-83149310 or visit the nearest branch.
(Source: OCBC)
Public Bank & Public Islamic Bank
- Moratorium of up to six months or restructuring/rescheduling of installment repayments
- Customers may submit applications for the bank’s available financial assistance.
- With regard to the automatic moratorium, Public Bank has announced that:
- Conventional loans: You will pay more interest by deferring. Simple interest will continue to be charged on the outstanding balance without compounding during the moratorium period.
- Islamic financing: You will not pay more profit charges by deferring. Profit will continue to accrue on the outstanding amount, but will not be compounded.
- You can also check out the bank’s FAQ.
- For more information, call the bank at 1800-22-5555 or visit the branch where you maintain your account.
(Source: The Star)
RHB Bank & RHB Islamic Bank
- Moratorium of up to six months or restructuring/rescheduling of installment repayments
- Customers in need of financial assistance will need to submit their requests to the bank to initiate the application process:
- SME: customer.service@rhbgroup.com
- Individuals: customer.advocacy@rhbgroup.com
- With regard to the automatic moratorium, RHB has announced that it will not be compounding interest during the period.
- You can also check out the bank’s FAQ.
- For more information, call the bank at 03-9206 8118, visit the nearest branch, or approach any relationship managers for assistance.
(Source: The Star)
SME Bank
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