Overview
In April 2020, HLB and HLISB introduced a six-month Personal Loan/Personal Financing-i Deferment Program for eligible Personal Loan/Financing-i customers where your instalments for the period commencing 1 April 2020 to 30 September 2020 has been deferred. (“Deferred Instalments”).
We wish to notify you of the variations of the terms and conditions of your Personal Loan/Financing-i Account as follows:
During the 6 months moratorium period under the Deferment Program, no interest/profit will be charged on the deferred instalments.
After expiry of the moratorium period starting 1 October 2020 Deferred Interest/Profit will be charged as follows:
- For personal loan, Deferred Interest will be charged on all Deferred Instalments until the deferred amounts are settled;
- For personal financing-i, Deferred Profit will be on the principal portion of the Deferred Instalments until the deferred principal portion is settled.
The interest/profit rate applied on the Deferred Instalment/Principal is the same as the Prescribed Rate of your existing Personal Loan/Financing-i facility (“Deferred Interest/Profit”) and is subject to a maximum effective interest/profit rate of 13.00% p.a.
By participating in the Deferment Program, your Personal Loan/Financing-i tenure will be extended by the number of months that it will require for you to
- settle your deferred instalments/principal, and
- settle the accumulated deferred interest/profit, based on the assumption you do not pay more than your current monthly instalment going forward.
We will notify you by letter/email/SMS on the extension of your maturity after the end of the moratorium.
Option 1: Avoid additional interest/profit
Repay/Pay in one lump sum before the end of Moratorium Period, by 30 September 2020.
For this option:
- No interest/profit will be charged on the deferred instalments.
- Monthly instalments and maturity date of your financing will remain unchanged.
Option 2: Maintain affordability
Continue with monthly repayments/payments until extended maturity of 6 months.
For this option:
- Interest/profit will be charged on deferred instalments/principal as specified above.
- Monthly instalments will remain unchanged and your maturity date will be extended for the number of months that it will require for you to settle
- your deferred instalments/principal, and
- the accumulated deferred interest/profit, based on the assumption you do not pay more than your current monthly instalments going forward.
- You may make extra payments at any time prior to maturity to reduce the outstanding Deferred Installments/Principal to minimize interest/profit charged.
If you wish to participate or opt-in to the Deferment Program no notification is required as your participation is automatic.
If you do not wish to participate or opt-in to the Deferment Program, do continue making payments as usual by the due dates. No notification is required. If you have a standing instruction that was initiated by us for your loan/financing, you may fill in the form here to have it reinstated.
What you need to know about the Interest/Profit Charges on your deferred installments/principal.
The Deferred Interest/Profit rate is equivalent to the prescribed rate of your personal loan/financing-i facility, subject to a maximum effective interest/profit rate of 13% p.a.
Interest/profit will start charging (accruing) on outstanding deferred installments/principal from 1 October 2020 onwards until the amounts deferred are settled.
No interest/profit will be charged if you make a lump sum payment of all your deferred instalments by 30 September 2020.
For personal loans,
- Deferred interest will be charged on total outstanding deferred instalments
- It is calculated on a simple daily interest basis
- The deferred interest will not be compounded.
For personal financing-i,
- Deferred profit will be accrued on the outstanding principal portion of the deferred instalments
- It is calculated on a simple daily basis current outstanding principal balance
- The deferred profit will not be compounded.
Please click here for some examples:
- Personal Loan
- Personal Financing-i
How will you extend my maturity?
When you opt-in, the Personal Loan/Personal Financing-i financing tenure will be extended for the number of months that it will require for you to:
- Settle your deferred instalments, and
- Settle the accumulated Deferred Interest/Profit,
based on the assumption you do not pay more than your current monthly instalment going forward.
We will notify you by letter/email/SMS on the extension of your maturity after the end of the moratorium.
Example:
You have deferred 6 months instalment during the moratorium period accumulating to RM6,000 (instalment of RM1,000 per month) and your accumulated Deferred Interest/profit is RM1,400.
Your tenure will be extended as follows:
By 6 months to pay RM6,000 over equal monthly instalments of RM1,000 per month.
By an additional 2 months to pay the deferred interest/profit of RM1,000 and RM400 respectively.
Hence, on 1 October 2020, we will extend your maturity by 8 months.
Please click here for some examples:
•Personal Loan
•Personal Financing-i
Other Information to help you understand more on Personal Loan/Financing-i Deferment Program
If you have a Standing Instruction (SI) for your Personal Loan/Financing-i which was initiated for you by the Bank, we have temporarily stopped your SI from your Hong Leong Savings Account/Savings Account-i or Current Account/Current Account-i.
Please click here to reinstate your SI, if you wish to make any repayments/payments during this moratorium period,
For standing instructions set up via internet banking or from outside Hong Leong Bank or Hong Leong Islamic Bank, please make arrangements on your own to have them reinstated.
Click here to download the Frequency Asked Questions for our Personal Loan/Financing-i Deferment Program
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Press Release / Announcement |
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1 |
Example: BNM Announcement #1 [link to respective webpage] |
2 |
Example: BNM Announcement #2 [link to respective webpage] |
3 |
Example: BNM Announcement #3 [link to respective webpage] |
4 |
Example: BNM Announcement #4 [link to respective webpage] |