Bank of Maldives (BML) has announced a six month moratorium on loan repayments for customers with personal, housing or business loans.
As part of the economic recovery plan to minimise the impact on individuals and businesses due to COVID-19, the government announced a deferment of loan repayments for BML customers. Following the decision, BML now allows a deferment of monthly principal and profit/lease repayments for 6 months to help individuals and businesses manage during the challenging time.
Moreover, BML added the tenor of the facility will also be extended by 6 months allowing more time to repay the principal and accrued profit/lease repayments. BML also said the repayment amount would be reduced by 20% for a further 6 months.
BML requires customers to have cleared all overdue loan payments to be eligible for the moratorium. However, credit cards and overdraft facilities for personal and business customers are not eligible for the moratorium.
Noting the interest charged during the 6 months will be added to the outstanding loan amount and spread over the remaining period of the loan, BML said interest rate charged for the customers will not be changed. BML revealed an online process for personal customers will be shared over the next week.