OCBC: No Compounding Interest On Mortgages & SME Loans For Moratorium
Author Avatar

OCBC

OCBC Malaysia has stated that the interest for its mortgages and SME loans during the six-month moratorium mandated by Bank Negara Malaysia (BNM) will not be compounded.

“OCBC Bank (Malaysia) Berhad and its subsidiary OCBC Al-Amin Bank Berhad will not be compounding interest and profit respectively for its mortgages and SME loans/financing during the 6-month moratorium announced recently by Bank Negara,” said OCBC in a statement. “This means that customers will not be charged any interest on the interest that arises from the moratorium period.”

“These are both trying and uncertain times. So we are seeking to alleviate our
customers’ burdens as much as we can,” said OCBC Bank CEO Dato’ Ong Eng Bin. “Although compounding might be allowed for, we have elected not to do so in light of the pressing circumstances.”

BNM has stated in its FAQ that interest would still continue to accrue and compound for loans during the deferment period, so any banks that decide to declare non-compounding interest are making that decision themselves. HSBC was the first bank to release a statement saying that it will not be compounding interest during the moratorium period this morning.

Yesterday, BNM announced that all banks and development financial institutions would offer an automatic deferment of six months for loan and financing repayments to SME and individuals, with effect from 1 April 2020.

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of

0 Comments
Inline Feedbacks
View all comments
Top Bank News Articles
Post Image
Malaysian Banks And Local Institutions Offer Financial Assistance For Customers Affected By Covid-19
Alex Cheong Pui Yin
- 1st April 2020
(Last update: 1 April 2020, 3.40pm to include FAQs by banks.) With Malaysia going into an extended period […]
Post Image
Loan Repayment Assistance Under PEMERKASA+ Is Available For Everyone
The RinggitPlus Team
- 15th June 2021
The latest spike in Covid-19 cases has led to the declaration of a third movement control order and […]
Post Image
CIMB: Touch ‘n Go eWallet Sees Healthy Volumes For Essential Services And Online Transactions
Alex Cheong Pui Yin
- 13th April 2020
CIMB Group Holdings Bhd, which owns Touch’n Go Sdn Bhd (TNGSB), has reported a continuation of healthy volumes […]
Post Image
Public Bank Extended Moratorium: Flexible Arrangements To Reduce Loan Instalments Until End-2021
Jacie Tan
- 7th August 2020
Public Bank has released the details of its Covid-19 assistance for those who will still be in financial […]

Related articles

Related Posts Image

CIMB Launches New Mobile Banking App, CIMB Octo

Jacie Tan -
2nd February 2021
Related Posts Image
Related Posts Image
Related Posts Image