It said its base rate will be reduced by 25 basis points from 2.77% to 2.52% per annum, while its base financing rate will be lowered from 5.72% to 5.47% per annum.
“The revision is timely as the moratorium period is coming to an end. We foresee that this move will cushion the post-moratorium impact to majority of our customers by easing their monthly installment commitments.
"It is the bank’s priority to ensure customers’ financial needs are considered through this challenging environment. We are ever ready to provide consultation on repayment arrangements with customers whom are badly affected by the Covid-19 pandemic," said Bank Islam CEO Mohd Muazzam Mohamed.
Bank Islam has also urged customers heavily impacted by Covid-19 to approach the bank to work out an arrangement as the six month moratorium period is due to end in September.
Mohd Muazzam said the bank empathises with its customers and it has been proactively adopting viable options to assist them in coping with the economic fallout from the pandemic which has impacted small businesses and retail customers.
"These customers make up a sizeable portion of our financing portfolio," he said in a statement released on Sunday.
"Covid-19 has brought upon us challenges that none of us anticipated before, and unfortunately, some have suffered greater than most. Arising from this, the bank has
granted the six months moratorium, and the customers will continue paying the same installment amount after the moratorium period.
"Within the six months of its implementation, Bank Islam has assisted more than 394,000 customers from all its customer segments.”
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