More Banks Offer Non-Compounding Interest On Loans During Moratorium

Jacie Tan

30th March 2020 - 2 min read

(Image: The Malaysian Reserve)

More banks have come forward to say that they will not be charging compounding interest on their loans during the six-month moratorium period: Hong Leong Bank, Public Bank, Affin Bank, CIMB, Agrobank, and BSN. Interest for individual and SME loans from these banks will not be compounded during the deferment period mandated by Bank Negara Malaysia.

Hong Leong Bank

Non-compounding interest applies to all SME loans/financing and loans/financing to individuals, including auto, housing, mortgages, personal loans/financing and Amanah Saham Bumiputra (ASB) financing, Pension financing and MyCoop loans/financing.

Public Bank

Non-compounding interest applies to all eligible individual and business customers.

Affin Bank

(Image: The Star)

Non-compounding interest applies to all individual and SME loans. Those who wish to opt out from the moratorium should visit their nearest Affin Bank branch, contact the call centre, or download the form from the Affin Bank website.

CIMB

(Image: New Straits Times)

Non-compounding interest applies to all eligible individual and SME customers.

Agrobank

(Image: The Malaysian Reserve)

Non-compounding interest applies to all eligible individual and SME customers. Agrobank has also stated that there will be no increase in the monthly repayment amount after the six-month moratorium.

BSN

Non-compounding interest applies to all eligible individual, micro, and retail customers.

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As per usual, compounding interest does not apply to Islamic financial products for all banks in compliance with Shariah law.

Other banks who have said that they will not be compounding interest during the moratorium include HSBC, OCBC, RHB, Maybank, and Alliance Bank, all of which made their announcements over the past week. If you’re looking to find out more about the financial assistance offered by banks in Malaysia to help those who are affected by Covid-19, make sure to refer to our article on it here.