A few days ago, we attempted to lay out Bank Negara Malaysia’s (BNM) granting of an automatic moratorium of six months for loans being serviced with local banks. Although the deferment was a welcome relief, it wasn’t without its caveats; chiefly the possibility of compounded interest for the duration of the extension.
Now, some banks are coming out to do their bit by announcing that they won’t be charging interest for the moratorium to further alleviate the financial strain on individuals and small and medium enterprises (SME).
The non-compounding and/or waiver of interest for the duration of the deferment by the banks are entirely internal initiatives and not under the order of BNM as the latter has no authority to enforce that. So, if you’re wondering why your bank isn’t on this list... they’re not legally obliged to.
Here’s the list of the banks that won’t be compounding interest during for the six months deferment:
- RHB Bank Bhd
- Malayan Banking Bhd (Maybank)
- OCBC Bank (Malaysia) Bhd
- CIMB Group Holdings Bhd
- Standard Chartered Bank Malaysia Bhd and Standard Chartered Saadiq Bhd
- Public Bank Bhd
- AmBank and AmBank Islamic
- Affin Bank and Affin Islamic Bank