KUALA LUMPUR: RHB Banking Group announced that it will not be compounding interest during the six-month repayment deferment for banking facilities (moratorium) that was announced by Bank Negara Malaysia on March 25.
This will, however, be applicable to retail and SME customers only and will take effect from April 1.
For Islamic financing, RHB will continue to observe the principle of no compounding of profit.
The moratorium will apply automatically to all RHB Bank and RHB Islamic Retail and SME customers, with the exception of loans/financing facilities that are in arrears exceeding 90 days as at April 1.
Key highlights of the moratorium are as follows:
> The moratorium will take effect from April 1,2020, for a period of six months.
> Customers who do not wish to avail of the moratorium may simply continue to pay their regular instalments.
> As an additional benefit, interest for all retail and SME banking facilities will not be compounded during the moratorium period.
> In line with shariah principles, profit on Islamic financing will not be compounded.
> Instalment payment amounts will remain unchanged upon uplifting of the moratorium.
> Loan/financing tenors under the moratorium will be extended for six months.
For credit card facilities, customers may request to convert the outstanding balances into a three-year term loan with reduced interest rates.
These measures will help to ease the cash flow of individuals and SMEs and would provide the much needed breathing space for customers to re-assess their financial positions, particularly those directly affected by Covid-19.
“These additional measures introduced by BNM in partnership with the banking industry provides critical relief to ease the financial burden of individuals and businesses, particularly the SMEs during this extremely challenging period.
“Further details on the repayment deferment and restructuring has been made available on our corporate website, ” said RHB Banking Group managing director Datuk Khairussaleh Ramli.
Customers may visit https://www.rhbgroup.com/covid-19/index.html for more information and FAQs on the moratorium arrangements.