by BERNAMA / pic by TMR FILE PIX
Maybank announced it will not compound interest for all individual, Small Medium Enterprises (SMEs) and non-retail/corporate customers loan facilities eligible for the six-month moratorium announced by Bank Negara Malaysia earlier this week.
Maybank said the eligible products under the automatic scheme for retail and SMEs clients include personal, mortgage, Amanah Saham Bumiputera (ASB), education and SME loans.
It said fixed-rate hire purchase loans already do not have compounding interest.
“For all Islamic financing facilities under the Group, profit rates are already not compounded in line with shariah principles,” it said in a statement.
However, Maybank said eligible non-retail/corporate customers need to submit the required application for the moratorium through their relationship managers or corporate bankers and if get approved, the same non-compounding of interest will apply to them.
Maybank said the COVID-19 pandemic is an unfortunate situation and the bank is taking this opportunity to do the right thing in line with its mission of humanising financial services.
“The bank hopes that with this additional measure, it will be able to provide them further relief from their financing obligations for this period and help them weather the other challenges they may be facing,” it added.