Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on March 27, 2020

KUALA LUMPUR: OCBC Bank (Malaysia) Bhd said it will not be compounding interest and profit on mortgages and loans for small and medium enterprises (SMEs) during the six-month moratorium.

This means these customers will not be charged any interest on the interest arising from the moratorium period, it said in a statement yesterday. This would apply to mortgage and SME customers.

“These are trying and uncertain times. So we are seeking to alleviate our customers’ burden as much as we can. Although compounding may be allowed for, we have elected to not do so in light of pressing circumstances.

“We hope our customers will continue exercising prudence in their spending during these challenging times,” said OCBC Bank chief executive officer Datuk Ong Eng Bin.

Bank Negara Malaysia has announced relief measures in support of banking institutions’ efforts to assist individuals, SMEs and corporations to manage the Covid-19 impact, including a six-month deferment of all loan and financing repayments beginning next month.

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