KUALA LUMPUR: Malayan Banking Bhd (Maybank) will not be compounding interest for all individual, small and medium enterprise (SME) and non retail/corporate customers loan facilities which are eligible for the six-month moratorium announced earlier this week.
Maybank said the eligible products under the automatic scheme for retail and SME clients include personal, mortgage, ASB, education and SME loans.
Fixed-rate hire purchase loans already do not have compounding interest.
It said all retail and SME customers do not need to apply for the moratorium as it will be automatically applied to all eligible loans and financing.
For all Islamic financing facilities under the group, profit rates are already not compounded in line with Shariah principles.
Meanwhile, the bank said eligible non-retail/corporate customers will, however, need to submit the required application for moratorium through their relationship managers or corporate bankers.
“If the applications for moratorium are approved, then the same non compounding of interest during this six month period will apply to them,” it said.
The bank hopes that the additional measure will be able to provide them further relief from their financing obligations and help them weather the other challenges they may be facing.
“The Covid-19 pandemic is an unfortunate situation and the bank is taking this opportunity to do the right thing in line with its mission of humanising financial services.
“Maybank is committed to relieving its customers’ distress during these trying times, and to allow them to focus on what matters most, which is their family and health,” it added.
Source : https://new.nst.com.my/business/2020/03/578592/no-compounding-interest-maybank-loans-during-moratorium