Kuala Lumpur, 27 March 2020 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) today announced that all individual and small and medium enterprise (SME) customers will be automatically enrolled for the 6-month moratorium1 on loan/financing repayments beginning 1 April 2020 until 30 September 2020.
“We welcome Bank Negara Malaysia’s announcement on the six-month moratorium as it provides clear relief to both businesses and consumers who have existing financing and are facing short-term cash flow constraints,” said Mr. Joel Kornreich, group chief executive officer of Alliance Bank.
“Following BNM’s announcement, we are pleased to announce that interest on conventional loans will not be compounded during the moratorium period. This is to help alleviate the financial burden of our individual customers and SME clients during the moratorium period,” added Mr. Kornreich.
In accordance with Shariah principles, the profit for Islamic Financing is not compounded. During the 6-month moratorium period, the interest/profit on the deferred loan/financing repayments will continue to accrue.
Credit cardholders may convert their outstanding balances into a 3-year term loan tenure at an effective interest rate of 13.0% p.a.
Individual customers and SME clients with loans/financing who wish to opt out from the automatic 6-month moratorium may do so by replying to the SMS notification sent by Alliance Bank by 30 March 2020. The Bank’s relationship managers have also been actively engaging with its corporate and commercial clients during this time to provide moratorium and other loan restructuring solutions.
To-date, the Bank has approved financing of over RM230 million to affected businesses and consumers under several financial relief initiatives, one of which being the COVID-19 Special Financing Facility for SMEs.
Customers who would like to find out more about the Bank’s financial relief programmes may visit the Bank’s corporate website at www.alliancebank.com.my.
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1 Applies to all loan/financing denominated in Malaysian Ringgit that have not been in arrears exceeding 90 days as at 1 April 2020.