UNITED Overseas Bank (Malaysia) Bhd (UOB Malaysia) will not compound interest on loans and mortgages for all eligible individual and small- and medium-sized enterprise (SME) customers during the six-month moratorium period.
For its Islamic banking customers, the bank would continue to observe the Shariah principle of not compounding profit on Islamic financing facilities, it said in a statement here.
“All individual and SME customers do not need to apply as they automatically qualify under BNM’s (Bank Negara Malaysia) relief measures. Their loans and mortgages will not be charged compounded interest during the moratorium period,” it said.
This means interest/profit accrued during the period will not be charged interest and the bank will not impose late penalty charges on the deferred amount.
Through this added relief measure that will take effect on April 1, 2020, UOB Malaysia hopes to further alleviate their customers’ financial burden.
For individual and SME customers who choose to opt out from this automatic moratorium, they will just need to inform the bank.
Meanwhile, for corporate customers, as they do not fall under the scope of BNM’s automatic moratorium measures, they can choose to opt in by submitting their request for a moratorium through their UOB Relationship Managers. This will be considered on a case-by-case basis.
In addition, UOB Malaysia will absorb the fees charged to customers when they use another bank’s automated teller machines (ATMs) to withdraw cash from their UOB bank account, it added.
UOB Malaysia will continue to evaluate its relief measures in collaboration with BNM to provide sufficient financial assistance to both its conventional and Islamic banking customers. – March 28, 2020, Bernama
