Thursday, February 26, 2009

Reduction in loan repayment amount

As reported in TheStar Online today, banks will automatically reduce the loan repayment amounts of their customers and this will be completed by the first quarter of this year, the Association of Banks said.

The reduce repayments was now possible following Bank Negara’s announcement of the reduction of the Overnight Policy Rate on Tuesday. That move would bring about the reduction of the base lending rates (BLR). All commercial banks had agreed to cut loan repayment amounts across the board while maintaining the loan repayment period. Borrowers who wish to maintain their current loan repayment amounts need to get in touch with their banks immediately.

For further details, please read here the Association of Banks' statement

I personally think that was really a great move by ABM in considering the board public burden in such a challenging time. News of more retrenchment is making a lot of people uneasy and concern of their next income. Bravo.

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