Hong Leong approves loan-relief application from 500th customer, closes 20 branches

HONG Leong Finance said on Wednesday that it has approved loan-relief applications from 500 customers to date - 300 from local businesses and 200 from retail customers.

The finance company said it "expects to see a further increase", following the announcement last week by the Monetary Authority of Singapore (MAS) that has opened the way for individuals to seek deferments in repaying a wider swathe of loans, including vehicle and commercial property loans.

To support customers with their cash flow, Hong Leong Finance has made available loan-payment deferment relief up to Dec 31, 2020 for commercial property for businesses, and residential property for retail customers.

Small and medium-sized enterprises (SMEs) with cash flow issues can also apply for the Enhanced Enterprise Singapore Financing Scheme - SME Working Capital Loan (WCL) and the Temporary Bridging Loan Programme (TBLP).

Hong Leong Finance has lowered interest rates per annum for the TBLP to between 2 and 3 per cent; that for the WCL has been reduced to between 3 and 4 per cent. Customers can also enjoy a waiver of processing fees during this period.

The finance company noted that more customers are opting to go digital during the circuit-breaker period.

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This comes as alternate fund transaction channels such as PayNow are available to retail customers to withdraw from or deposit into their fixed deposit or savings accounts; loan-payment modes like PayNow, AXS, Giro and cheques are also available.

Growth in loan repayments through PayNow has tripled to 14 per cent per month, said Hong Leong Finance.

The company launched an online deposit instruction form last month for individuals who wish to renew or place fixed deposits, in lieu of having to visit the companies' branches personally. More than 1,000 requests for this facility have been received and the number is growing fast, said the company.

Hong Leong Finance has closed 20 branches and seven of its in-branch SME Centres to allow its employees to work from home. Customers can still visit its eight branches and five SME Centres that remain open, although their operating hours have been shortened. The two hours between 10am and noon on Mondays to Fridays have been set aside for customers who are elderly, pregnant or have mobility issues. 

Ang Tang Chor, president of Hong Leong Finance, said: "We are committed to weathering this crisis together with our customers and employees. We understand the financial pains that our customers are undergoing during this challenging period. We will do what we can to help them with loan-relief schemes."