HSBC Malaysia says loan interest won’t be compounded during moratorium period

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25 March, KUALA LUMPUR – HSBC Malaysia, comprising HSBC Bank Malaysia Bhd and HSBC Amanah Malaysia Bhd, is providing an extra measure for its individual and small and medium-sized enterprise (SME) customers beyond the loans or financing deferment measures announced by Bank Negara Malaysia (BNM).

It said the interest for conventional loans as well as profit on Islamic financing would not be compounded during the moratorium period for its retail and SME customers.

This was on top of the automatic moratorium offered to help customers impacted by the COVID-19 outbreak, HSBC said in a statement today.

READ: Individuals & SMEs now automatically qualify for 6-month loan deferment. Here’s all your questions answered

BNM today announced that all the financial institutions regulated by it would offer a six-month deferment for all loan or financing repayments starting next month, applicable for all ringgit-denominated performing loans that had not been in arrears for more than 90 days as at April 1.

However, the central bank said, interest would continue to be accrued for conventional loans (excluding hire purchase loans) while profit from Islamic financing would be accrued but not compounded.

HSBC Bank Malaysia chief executive officer Stuart Milne said the bank would continue to support Malaysia through ups and downs.

“We empathise with everyone who is currently going through a challenging time here in Malaysia due to the COVID-19 outbreak and therefore we have taken the decision — for retail and SME customers — that both the interest for conventional loans as well as profit on Islamic financing will not be compounded during the moratorium period. We hope this proactive effort will help ease the financial burden of our retail and SME customers,” he said.

For corporate customers, he said HSBC would review on a case-by-case basis and thus encourage its corporate customers to reach out to the bank via their relationship managers.

“Please note that only non-impaired accounts are qualified for moratorium. This moratorium applies to all loans/ financing outstanding as at April 1, 2020.”HSBC Malaysia continues to be in consultation with BNM as we evaluate further initiatives to proactively lend a helping hand to our individual and commercial customers as they navigate through their financial challenges during this trying time. We stand ready to provide comprehensive assistance to our customers who are in need,” he added.

The bank will provide more details by April 1. Retail customers may refer to www.hsbc.com.my/help/coronavirus and SME customers can contact their relationship managers for more updates.

– BERNAMA


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