RHB, however, said this would be applicable to retail and small-and-medium enterprises (SME) customers only. File Photo
KUCHING: RHB Banking Group (RHB) said today that it will not be compounding interest during the six-month repayment deferment for banking facilities (moratorium) recently announced by Bank Negara Malaysia (BNM).
In a press statement, RHB, however, said this would be applicable to retail and small-and-medium enterprises (SME) customers only and take effect from April 1.
“For Islamic financing, RHB will continue to observe the principle of no compounding of profit. The moratorium will apply automatically to all RHB Bank and RHB Islamic retail and SME customers, with the exception of loans or financing facilities that are in arrears exceeding 90 days as at April 1,” said the statement.
For credit card facilities, RHB said customers may request to convert the outstanding balances into a three-year term loan with reduced interest rates.
These measures, according to RHB, will help to ease the cash flow of individuals and SMEs and would provide the much-needed breathing space for customers to re-assess their financial positions, particularly those directly affected by Coronavirus Disease (Covid-19).
“These additional measures introduced by BNM in partnership with the banking industry provide critical relief to ease the financial burden of individuals and businesses, particularly the SMEs during this extremely challenging period.
“Further details on the repayment deferment and restructuring has been made available on our corporate website,” RHB group managing director Dato’ Khairussaleh Ramli was quoted as saying in the statement.
Visit here for more information and FAQs on the moratorium arrangements.