Malaysian Banks And Local Institutions Offer Financial Assistance For Customers Affected By Covid-19

bank financial assistance covid 19

(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
 

 

  • Affin Bank
  • Agrobank
  • Alliance Bank
  • AmBank
  • Bank Islam
  • Bank Muamalat
  • Bank Simpanan Nasional
  • CIMB
  • Hong Leong Bank
  • HSBC Bank
  • Maybank
  • MBSB Bank
  • OCBC
  • Public Bank
  • RHB Bank
  • Standard Chartered
  • SME Bank
  • UOB

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
affin bank
(Image: The Star)
  • 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:

(Source: Affin Bank)

Agrobank
agrobank
(Image: The Malaysian Reserve)
  • 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
alliance bank
(Image: The Star)
  • 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
(Image: Allen International)
  • 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 [email protected], or visit the nearest branch.

(Source: AmBank)

Bank Islam
bank islam
(Image: The Malaysian Reserve)
  • 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
bank muamalat
(Image: The Malaysian Reserve)
  • 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 [email protected] or visit the nearest branch.

(Source: Astro Awani)

Bank Rakyat
bank rakyat
(Image: The Star)
  • 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)
bank simpanan nasional
(Image: The Star)
  • 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
cimb-branch-1
(Image: New Straits Times)
  • 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
hong leong bank-1
(Image: The Malaysian Reserve)
  • 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 [email protected] to initiate all application processes.

(Source: Bernama)

HSBC Bank & HSBC Amanah Malaysia Berhad
hsbc
(Image: Finance Brokerage)
  • 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:
  • 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
maybank
(Image: The Star)
  • 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
mbsb
(Image: The Malaysian Reserve)
  • 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

ocbc

  • 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
public bank-1
(Image: The Edge Markets)
  • 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
rhb-1
(Image: The Borneo Post)
  • 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:
  • 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
sme bank
 (Image: The Malaysian Reserve)
  • Temporary deferment of financing repayments or restructuring of installment repayments
  • SME customers can also tap into the special relief facility for SMEs by Bank Negara Malaysia.
  • With regard to the automatic moratorium, SME Bank will not be compounding the interest on their loans during this period.
    • Although its FAQ mentions that interest will be compounded on the outstanding balance for conventional loans, SME Bank is primarily focused on business loans, and thus, automatically do not compound its interest.
  • For more information, call the bank at 03-2603 7700 or visit the bank’s website.

(Source: SME Bank)

Standard Chartered

standard chartered

  • Temporary deferment of financing repayments for up to 6 months for:
    • Personal loans/Personal financing-i
    • Residential mortgage/Saadiq MyHome-i or Saadiq MyHomeOne-i and commercial mortgage loan/Biz Property Equity-1
    • Business instalment loan/Biz-Financing-i and guaranteed instalment loans/guaranteed instalment financing (GIF)
  • Credit card deferment programme
    • Conversion of outstanding credit card balances (excluding instalments) into a 36-month term loan at 13 p.a.
  • With regard to the automatic moratorium, Standard Chartered has announced that it will not compound the interest for conventional loans or profit for Islamic financing during this period.
  • You can also check out the bank’s FAQ.
  • For more information, call the bank’s Client Care Centre at 1300-888-888 or email at [email protected].
UOB Bank
uob malaysia
(Image: UOB Glassdoor)
  • For conventional and Islamic banking corporate clients:
    • Moratorium for up to one year
    • Flexibility to request extension of trade bills maturing between 18 March to 31 March 2020 for clients with good records
    • Review to grant additional facilities based on clients’ financing needs for those who need access to additional financing
  • For individual customers:
    • Rescheduling and restructuring of mortgages, personal loans, and credit card repayments
    • Moratorium up to six months on personal loans, mortgages, and credit cards
    • Interest-only repayments or payment holiday of up to six months on credit card repayments
  • Customers may submit applications for the bank’s available financial assistance.
  • With regard to the automatic moratorium, UOB has announced that it will not be compounding interest during the period.
  • You can also check out the bank’s FAQ.
  • For more information, individual customers can call the Customer Contact Centre at 03-2612 8121 or email the bank at [email protected], whereas business banking customers can contact the Business Engagement Team at 03-2616 6800 or email the bank at [email protected].
*Special Relief Facility by Bank Negara Malaysia (BNM)
bank negara malaysia
(Image: The Star)

Affected small and medium-sized enterprises (SMEs) can tap into a special relief facility provided by Bank Negara Malaysia (BNM). Allocated through the Economic Stimulus Package 2020, the facility is worth a total value of RM2 billion and will be provided as a form of working capital for SMEs impacted by the Covid-19 pandemic.

Each SME is allowed to borrow up to RM1 million, with an interest rate of up to 3.75% per annum. No guarantee and legal fees will be imposed, and you will not require a collateral either. The maximum financing tenure is set at five and a half years, including a moratorium of 6 months on both principal and interest payments.

Note that only SMEs with at least 51% of their shares held by Malaysians are eligible for this facility.

Non-Banking Institutions

Agensi Kaunseling Dan Pengurusan Kredit (AKPK)
akpk
(Image: Mypt3.com)
  • Possible deferment of loan repayments in AKPK’s debt management programme (DMP)
  • You will need to apply by filling in a form and selecting “Kesukaran membuat pembayaran bulanan/Difficulty to commit to DMP monthly instalment” for Question 6.
  • APKP officers will be in touch, either through phone calls or emails.
Lembaga Hasil Dalam Negeri (LHDN)

lhdn

  • Deadline for income tax filing is extended by two months to facilitate the submission of tax returns affected by the movement control order.
  • New deadlines:
    • Resident individuals who do not carry on a business: 30 June 2020
    • Resident individuals who carry on a business: 30 August 2020
  • For more information, you can make enquiries via the Hasil Care Line at 03-8911 1000 or +603-8911 1100 (abroad).
Majlis Amanah Rakyat (MARA)
mara
(Image: New Straits Times)
  • Application for deferment of loan repayments for students and entrepreneurs available:
    • 3-month deferment for MARA students, including borrowers of the Advanced Education Loan facility. This is provided they do not have outstanding debts for three months.
    • 6-month deferment for entrepreneurs, provided they do not have outstanding debts for more than two months.
  • 30% discount on the lease of MARA business premises given to all entrepreneurs, although this is subject to terms and conditions.
  • For more information, visit www.mara.gov.my or call the MARA Call Centre at 03-2613 2000.

(Source: Malay Mail)

Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN)
ptptn
(Image: Malay Mail)
  • Deferment of loan repayments until 30 September 2020
  • For more information, call PTPTN’s Careline at 03-2193 3000 (Monday to Friday, 9 a.m. to 5 p.m.) or visit www.ptptn.gov.my

(Source: Malay Mail)

Tabung Ekonomi Kumpulan Usaha Niaga Nasional (TEKUN Nasional)

tekun nasional

(Source: Free Malaysia Today)

***

The Covid-19 pandemic – which was first detected in Wuhan, China – had negatively impacted Malaysia’s economy after the Chinese government imposed strict travel and logistical restrictions to contain the spread of the virus. The situation further worsened when Malaysia became the worst-affected Covid-19 country in Southeast Asia, with numbers quickly soaring in a second wave of infection since early March 2020.

This prompted Prime Minister Tan Sri Muhyiddin Yassin to impose a movement restriction order that will last until 31 March 2020, forcing many businesses to either fully close or operate on a partial basis.

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Adam
3 months ago

This all only helps to who are have a permanent job. No one will consider of those who have working with cash job, part-time, subcontract worker and many more workers those are facing financial matter in this period.

smith
3 months ago

maybank is on compounding interest, please read the maybank webpage faq. this is quite misleading over here.

Editor
3 months ago
Reply to  smith
Premraj Victor
3 months ago

Sir, thank you for your article. I appreciate the efforts made by Ringgit Plus to given information regarding the moratorium. Can I just highlight about Maybank? According to thei FAQ (https://www.maybank2u.com.my/iwov-resources/pdf/personal/announcement/2020/moratorium-individuals_faq.pdf)- these were words printed- Will I need to paymore interest/profit after the moratorium period is over? Answer: No, you won’t have to. For consumer (Mortgage/ASB/Personal/Education) conventional and Islamic loan/financing, the contracted monthly interest/profitwill continue to accrue on the outstanding principal amountduring the moratorium period, but will not be compounded However, for hire purchase loans/financing, you do not need to pay more interest/profit. Therefore is Maybank compounding interest (or accreing… Read more »

Editor
3 months ago
Reply to  Premraj Victor

Interest accrual is not the same as interest will compound. It means that during the deferment period, you may not have to make monthly repayment, but the loan will still accumulate interest as it is still active.

If interest compounds, it means each month the outstanding amount will be higher as you will be charged additional interest on the interest charged the previous month. We will demonstrate this in a future article, please keep a look out for that!

mm
2 months ago

For Citibank Malaysia : https://www.citibank.com.my/index.htm

Their FAQs on Covid-19 Relief Program : https://www.citibank.com.my/MCO/?lid=MYENCBGCICATLHere

Perhaps the editor can update their article to include Citibank Malaysia.

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