CIMB grants automatic moratorium on loans by individuals, SMEs

CIMB said interest/ profit would continue to accrue on loan/financing repayments that are deferred and customers would need to honour the deferred repayments in the future, while interest on conventional loans would not be compounded during the moratorium period.— Reuters pic
CIMB said interest/ profit would continue to accrue on loan/financing repayments that are deferred and customers would need to honour the deferred repayments in the future, while interest on conventional loans would not be compounded during the moratorium period.— Reuters pic

KUALA LUMPUR, March 27 — CIMB Bank Bhd and CIMB Islamic Bank Bhd will grant an automatic moratorium on loan/ financing repayments to its individual and small and medium enterprise (SME) customers, in line with the relief measures announced by Bank Negara Malaysia.

For individual customers, eligible Islamic and conventional products under this moratorium include Amanah Saham Bumiputera (ASB) financing, home, auto financing and personal financing (Express Cash, Cash Plus Loan and Awam-i).

For SME customers, the moratorium applies to all existing term loans/ financing and industrial hire purchase, CIMB Group said in a statement today.

It said interest/ profit would continue to accrue on loan/financing repayments that are deferred and customers would need to honour the deferred repayments in the future, while interest on conventional loans would not be compounded during the moratorium period.

For Islamic financing, the profit will continue to be accrued during the moratorium period and the profit would not be compounded in line with Shariah principles.

Loan/ financing repayments will resume after the moratorium, CIMB said.

It said individual customers may opt out of the moratorium should they wish to continue with their existing schedule.

They can send an SMS to a dedicated number stating their full loan/ financing account number and the last four digits of their I/C number.

CIMB said SMS Opt Out details will be made available on its website on March 31, 2020.

SME customers who wish to opt out are advised to visit CIMB’s website to fill in the Let-Us-Call-You e-form for SMEs, or to contact their relationship manager.

Meanwhile, credit card customers may opt to convert their card balances to a term loan/ financing at 13 per cent per annum and up to a tenure of three years.

CIMB said it will proactively engage with corporate borrowers to facilitate their needs during this challenging time.

“It is CIMB’s intention to support and enable corporations to overcome current disruptions to their business operations, in order to support wider employment and economic recovery,” CIMB Group chairman Datuk Mohd Nasir Ahmad said. — Bernama

Related Articles