Several banks in the country have decided to provide leeway for customers to repay their bank loans as the Covid-19 outbreak takes a toll on Malaysians financially.
Maybank, Public Bank and CIMB Bank are giving the most affected customers immediate moratorium of up to six months for their monthly loan and financing instalments.
Maybank posted on its website that anyone with hire purchase, personal, mortgage, ASB (Amanah Saham Bhd), education or small-medium enterprise loan or financing can apply for a financial relief scheme which includes restructuring and rescheduling of financing facilities if required.
Public Bank is also offering the same terms, in addition to accommodating requests by affected customers to restructure or reschedule their loans and financing, as well as assist in their cash-flow situation during this difficult time.
Public Bank Managing Director, Tan Sri Dato’ Sri Tay Ah Lek said in a statement: “As the outbreak escalates, Public Bank will continue to be very active in providing financial relief measures to help all its customers to alleviate their financial difficulties.”
Public Bank is working concertedly with Bank Negara Malaysia in offering the special relief facility to SME customers. The bank has enhanced its internal processes to facilitate faster loan approval and disbursement to assist eligible SME customers to overcome their financial constraints amid this difficult situation.
SMEs which intend to apply for the Special Relief Facility are advised to approach any Public Bank branches, or email to pbbsmesupport@publicbank.com.my, for financial advice and assistance.
CIMB Bank is also offering personal refinancing facilities.
“As a responsible corporate citizen, we hope to be able to do our part by providing financing relief to help alleviate the financial burden of affected customers from the Covid-19 outbreak.
“We are monitoring the situation closely and will consider adjusting the moratorium and financial relief for an extended period,” CIMB Group chairman Datuk Mohd Nasir Ahmad was quoted as saying.
Besides that, CIMB is offering SMEs up to RM1 million in financing for a tenure of up to five and a half years, which includes the six-month loan repayment moratorium, at an affordable financing rate of 3.75 percent per annum.
Meanwhile, nine Islamic banks are allowing customers to defer their loan instalments or servicing for up to six months amid the Covid-19 crisis.
According to a list provided by the Association of Islamic Banking and Financial Institutions Malaysia, 17 of its 26 members have issued statements on financial assistance during the movement-control order (MCO) enforcement period effective yesterday to March 31.
Among those offering the deferment of loan instalments or servicing for up to six months are:
- Affin Islamic Bank Bhd
- Alliance Islamic Bank Bhd
- Bank Islam Malaysia Bhd
- Bank Muamalat Malaysia Bhd
- Hong Leong Islamic Bank Bhd
- Maybank Islamic Bhd
- Public Islamic Bank Bhd
- RHB Islamic Bank Bhd
- Standard Chartered Saadiq
Agrobank, Bank Rakyat and Bank Pembangunan Malaysia Bhd said they will offer temporary relief to customers based on business needs and the current situation.
Another five banks – AmBank Islamic Bhd, Bank Simpanan Nasional, CIMB Islamic Bank Bhd, OCBC Al-Amin Bank Bhd and SME Bank – said they are open to a temporary deferment or restructuring of instalments on a case-by-case basis.
Customers are asked to go to the nearest branch to discuss their needs.
Yesterday, it was reported that Bank Negara Malaysia (BNM) is providing a RM2 billion special relief facility (SRF), which will be deployed in the form of working capital, to assist small and medium enterprises facing short-term cash-flow problems.
The fund for SMEs comprises three components: the SRF, agrofood facility to increase food production, with an allocation of RM1 billion, and SME automation and digitalisation facility to incentivise businesses to automate processes and digitalise operations, with an allocation of RM300 million.
There has not been a public statement from the central bank or Association of Banks on providing relief on loan repayments, but individual banks have begun making their own moves.
AmBank Group yesterday said it will provide relief to coronavirus-hit individuals and businesses by granting temporary payment deferrals. It has also set up an SRF of RM1 million for affected SMEs.
RHB Bank, too, announced a six-month moratorium for monthly instalment payments, or the restructuring or rescheduling of loans and finances.
BNM, however, has said financial services will continue as normal throughout the MCO. Banking and financial services are listed as essential services, which can operate under the directive.