Citi Malaysia has announced that it will be waiving the compounded interest for conventional loans during the upcoming automatic moratorium. It is applicable for mortgage and personal loans during the six-month deferment period, which is slated to begin on 1 April 2020.
Additionally, the bank will not compound the accrued profit for its Islamic home financing, which is in line with Shariah principles.
The automatic moratorium offered by Citi Malaysia will be open to eligible individual and SME customers, for loans or financing that are not in arrears for more than 90 days as of 1 April 2020 and are denominated in ringgit. It excludes credit card balances.
As for other corporates affected by Covid-19, Citi Malaysia will review each moratorium request on a case-by-case basis.
Citi customers are also encouraged to reach out to the bank regarding their repayment affordability after the moratorium. If they wish, they may opt out of the moratorium and continue with their current repayment or payment terms.
“This is our first wave of relief and we are actively assessing the situation and listening to our customers. Our commitment to all our stakeholders and to the country is one of support and delivery of our best capabilities especially in these difficult times,” said the chief executive officer of Citi Malaysia, Lee Lung Nien.
Citi Malaysia’s financial relief measures are in line with Bank Negara Malaysia’s (BNM) recent directives for the automatic deferment of individual and SME loans for a period of 6 months, as well as the conversion of outstanding credit card balances into term loans. It is the latest of several banks to have come forward to declare non-compounding interest for the period of the moratorium.
You can also find out more about other financial assistance offered by banks in Malaysia in our article here.
(Source: New Straits Times)