In light of the recent shock to the economy due to the Coronavirus pandemic, financial institutions are doing their part in helping the rakyat with managing their monthly repayments.
The Covid pandemic has hit us hard – Numerous businesses across various industries are at a near standstill as Malaysians across the country religiously practise social distancing during the 14-day Movement Control Order (MCO). On the 16th of March, Prime Minister Tan Sri Muhyiddin Yassin announced a nationwide partial lockdown from 18-31 March to curb the spread of the Covid-19 virus in Malaysia.
In efforts to lighten the financial burden of consumers who are affected by the outbreak, most banks in Malaysia have announced special financial relief programmes for their customers either via media statements or their social media pages. These include temporary loan instalment deferments or moratorium periods to their borrowers.
NEW UPDATE FROM BNM: Individuals & SMEs now automatically qualify for 6-month loan deferment, regardless of which bank they are customers of. Read the full details here.
Here is a compilation of the list of the major banks and their respective financial aid details – This list is accurate at time of publishing:
1. RHB Bank and RHB Islamic Bank
Offering: A moratorium of up to 6 months for loan repayments to customers affected by the outbreak, via a financial relief programme for both individuals and SMEs. There are 2 options available:
- Apply for a temporary suspension of up to six months for monthly instalment payments.
- Restructure or reschedule (R&R) your loans and financing agreements
To submit a request: Email RHB at firstname.lastname@example.org
For more info: Call 03-9206 8118
2. HSBC Malaysia
Offering: Liquidity relief such as moratoriums and repayment flexibility to assist their customers. The moratorium is on loans or financing, mortgages or home-financing and retail business banking (Fusion).
Other customers who can apply for a moratorium: Credit cardholders, commercial banking customers such as SMEs.
To submit a request/For more info: Contact HSBC’s hotline numbers below, from 9 am to 5.30 pm (Monday to Friday):
-Credit Cards Customers: 1300-22-2733
-Mortgage / Financing Customers: 1300-88-1121
-Fusion Customers: 1300-80-1998
UPDATE: For customers with sound financing record, HSBC has pre-approved 30-day extension of trade loans/financing maturing between March 18 – 31 without any additional fee or penalty rate.
Offering: Moratorium or payment holiday of up to 6 months for business and SME customers as well as individuals impacted by the ongoing Covid 19 virus outbreak. This could also include restructuring and rescheduling of financing facilities, if required. The financing facilities covered are:
- Hire Purchase Loan/Financing
- Personal Loan/Financing
- Mortgage Loan/Financing
- Investment Loan/Financing
- Education Loan/Financing
- SME Loan/Financing.
How to apply: Apply online at https://mybk.co/33tJUF2
4. CIMB Bank & CIMB Islamic
Offering: Financial relief programme which includes a moratorium on loan repayments for up to six months to affected customers. This is on top of the standard restructuring and rescheduling financing programmes offered to all affected individual and business customers, announced earlier this month.
For eligible SMEs: Can obtain up to RM1mil in financing for a tenure not exceeding 5 and a half years – this includes a moratorium on loan repayments for a six-month period at a financing rate of 3.75% per annum.
To apply for financial relief: Submit an email to email@example.com or call CIMB’s Call Centre at 03-62047788
5. Public Bank
Offering: An immediate moratorium of up to 6 months for the monthly instalment payments of loans and financing for individual and business customers affected by the Covid 19 outbreak. Public Bank will either restructure or reschedule customers’ loans and financing, to assist in their cash-flow situation during this difficult time.
For public enquiries & assistance: Contact 1800 225 555.
For SME customers: Either approach any Public Bank branch or email to firstname.lastname@example.org
6. OCBC Bank
Offering: Relief measures to support impacted customers. These include:
- A 6-month moratorium on principal repayment for housing loan/financing, bridging loans, and additional working capital lines.
- A special Relief fund for SMEs to help alleviate short term cash flow problems
To submit a request/For more info: Contact OCBC’s hotline numbers below:
-Personal banking: 03-8317 5000
-Business Banking: 03-83149310
-OCBC Al -Amin: 03-83149310
7. Alliance Bank
Offering: Financial relief for customers whose business or employment are currently impacted by Covid-19, including:
- deferment of loan instalments 0r financing servicing (of principal and interest or profit)
- loan restructuring and rescheduling for up to six months
- waiver of late charges for loans or financing.
For more details: Contact 03-5516 9988.
Bank Negara Malaysia (BNM) is currently providing a RM2 billion Special Relief Facility, which will be deployed in the form of working capital to assist SMEs in alleviating short term cash flow problems.
Offering: Temporary payment deferment or restructuring of instalment repayments for its individual and small and medium enterprise (SME) customers.
For SME customers affected by Covid 19: A special relief facility comprising financing of up to RM1 million. Those applying for this facility will enjoy approval pro within 24 hours and a disbursement within 5 days of approval.
To submit a request/ For more info:
Individual customers: Submit an email to email@example.com or call 03 2178 8888
SME customers: Contact respective relationship managers, drop an email at firstname.lastname@example.org or call the corporate services hotline at 03 2178 3188.
CHECK OUT: Should I buy a house now or wait?
9. Standard Chartered Bank
Offering: Interest-only payment option on instalment loans for up to 6 months for retail and Small and Medium Enterprises (SME) clients whose business has been affected by the pandemic – this payment option is available to both conventional and Islamic loans.
For more info: Contact 1300-88-8888
10. Hong Leong Bank
Offering: Customer Financial Relief Plan to assist affected individuals and SME customers with a moratorium of up to 6 months on their monthly loan or financing payments. Restructuring and rescheduling of loans/financing is also available.
For SME customers: Customers could obtain up to RM 1 million of collateral-free financing for the tenure of up to 5.5 years. This incentive is available from 18 March to 31st December 2020.
For more info: Email at HLonline@hlbb.hongleong.com.my or call 03-7626 8899.
Take note of these!
For those leveraging on the moratorium incentive, you have to remember that this is not free money, you will still be required to pay off the amount you deferred. Even though you will not be paying any instalments for the time being, loan interest will still be calculated and charged. This means that either your loan tenure will be lengthened or the accumulated interest will be spread out in the balance of your loan instalment once the deferment period ends.
Nevertheless, if you are facing hard times at the moment, this would definitely be a much better option than defaulting on your loan.
Lastly, do take note that applications for these financial incentives are subject to each bank’s discretion. We suggest you contact your respective banks for further clarification and assistance.