Agrobank Won’t Impose Additional Profit Charges During Six-Month Automatic Moratorium

Agrobank announced that it will not impose any additional profit charges on financing for all individual and small and medium-sized enterprise (SME) customers during the six-month automatic moratorium period.

This announcement was made after Bank Negara Malaysia (BNM) stated that fixed-rate Islamic financing may come with additional profit charges after the automatic moratorium period effective from April 1 until September 30, 2020.

There would be no change in the current amount of outstanding and profit borne by Agrobank customers

President and chief executive officer Khadijah Iskandar said in a statement that Agrobank is committed to relieving our customers’ distress during these trying times. The eligible customers will pay the same monthly repayment amount from October 2020 onwards.

However, the financing tenure will be extended to another six months to accommodate the six-month grace period during the automatic moratorium.

This move will benefit many of its micro financing customers

“The Covid-19 pandemic is an unfortunate situation which has affected businesses including those in agriculture industry, particularly small and micro businesses. This move will benefit many of our micro financing customers.

Agrobank also hopes that the announcement will be able to provide the customers further relief from their financing obligations and other challenges they may be facing during these trying times.

The payment deferment is still automatic and no additional steps are required

In a statement, Agrobank stressed that the payment deferment is still automatic and customers don’t have to take any additional steps to be entitled to the moratorium facility.

But, for customers who do not wish to take up the moratorium, they can choose to do so by filling up a form at www.agrobank.com.my/no-mora and resume their scheduled payments based on the terms of their existing agreements.

For more information on Covid-19: Agrobank Relief Measures & Support, you may click here.

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