KUALA LUMPUR (March 26): OCBC Bank (Malaysia) Bhd said it will not be compounding interest and profit on mortgages and loans for small and medium enterprises (SMES) during the six-month moratorium period.
This means that these customers will not be charged any interest on the interest that arises from the moratorium period, it said in a statement.
This would apply to both mortgage and SME customers.
“These are both trying and uncertain times. So we are seeking to alleviate our customers’ burdens as much as we can. Although compounding might be allowed for, we have elected not to do so in light of the pressing circumstances.
“We hope our customers will continue to exercise prudence in their spending during these challenging times,” said OCBC Bank chief executive officer Datuk Ong Eng Bin.
Yesterday, Bank Negara Malaysia announced relief measures in support of efforts by banking institutions to assist individuals, SMEs and corporations to manage the impact of the Covid-19 outbreak, including a six-month deferment of all loan/financing repayments beginning next month.