KUALA LUMPUR, March 25 -- Hong Leong Bank Bhd (HLB) and its Islamic banking subsidiary, Hong Leong Islamic Bank (HLISB), will be offering an automatic six-month loan repayment deferment for all the bank’s small and medium enterprise (SME) and individual customers effective April 1.
This move is in adherence to Bank Negara Malaysia’s latest measures to assist borrowers or customers who are experiencing temporary financial constraints due to the COVID-19 outbreak, it said in a statement today.
HLB group managing director and chief executive officer Domenic Fuda said the automatic loan repayment deferment will alleviate the hardships for businesses as well as households and provide a much-needed respite for borrowers who are both directly and indirectly affected by the outbreak.
“All SME loans and loans to individuals, including auto, housing, mortgages, personal loans or financing, will be given the automatic six-month deferment period and customers can opt out of this loan deferment by continuing to service their monthly loan or financing as per normal.
“For credit cards, cardholders will have the option to convert outstanding credit card balances into a term loan/financing for a tenure of not more than three years at an effective interest/profit rate of 13 per cent per annum, and customers can continue to use their credit card and pay their monthly credit card payments as normal.
“Corporate customers can also apply for loan deferment through their relationship managers and will be evaluated on a case-by-case basis,” he said, adding that the bank will continue to provide the necessary support for customers to make sure their short-term cash flow challenges don’t turn into problems of long-term business viability.
The bank is also continuing to extend support to SMEs via BNM’s Special Relief Facility that offers SMEs up to RM 1 million in financing with no collateral required, a term loan of up to 5.5 years and at a financing rate capped at 3.75 per cent, he added.
Malaysia National News Agency
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