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KUALA LUMPUR: Bank Pertanian Malaysia Bhd (Agrobank) said it will not impose any additional earnings charges on all eligible customers during the six-month automatic moratorium period.
Agrobank, one of the largest development finance institutions, is believed to be one of the first to announce the exemption for fixed-rate loans.
“Agrobank is committed to alleviating the anguish of our clients during these difficult times. Therefore, for our fixed rate financing clients, especially microfinance clients, there would be no change in the current amount of outstanding balances and earnings of our clients, “President / CEO Khadijah Iskandar said in a statement.
She said the bank’s clients will pay the same monthly repayment amount from October 2020 onward, but the financing tenure will be extended to another six months to accommodate the six-month grace period during the automatic default.
This followed Banco Negara’s announcement, Islamic fixed-rate financing may come with additional earnings charges after the six-month moratorium that will take effect from April 1 to September 30 of this year.
“The COVID-19 pandemic is an unfortunate situation that has affected companies, including those in the agricultural industry, especially small and micro businesses. This move will benefit many of our microfinance clients. Agrobank is committed to supporting our clients in strengthening their businesses during this difficult time, ”said Khadijah.
The bank hopes that the announcement can provide further relief from their financial obligations and help them overcome other challenges they may face.
Agrobank also said that deferment of payment remains automatic for its clients and that no additional steps are required for clients to qualify for the automatic moratorium facility.
However, for customers who do not wish to accept the moratorium, they may choose to do so at this time by filling out a form at www.agrobank.com.my/no-mora and resuming their scheduled payments based on the terms of their existing agreements.
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