RHB Banking Group announced today it will not compound interest during the six-month loan repayment moratorium for its retail, and small and medium enterprise (SME) customers effective April 1.
For Islamic financing, RHB will continue to observe the principle of no compounding profit, it said.
RHB group managing director Datuk Khairussaleh Ramli said these measures will help ease the cash flow of individuals and SMEs as well as provide the much-needed breathing space for customers to re-assess their financial positions, particularly those directly affected by Covid-19.
“The moratorium will apply automatically to all RHB Bank and RHB Islamic Retail as well as SME customers, with the exception of loans/financing facilities that are in arrears exceeding 90 days.
“Instalment payment amounts will also remain unchanged upon uplifting of the moratorium and loan/financing tenors under the moratorium will be extended for six months,” he said in a statement.
For credit card facilities, customers may request to convert the outstanding balances into a three-year term loan with reduced interest rates, Khairussaleh added. — March 27, 2020, Bernama