• February 06, 2020
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BOCHK introduces five financial support initiatives amid the epidemic

In view of the current novel coronavirus outbreak, Bank of China (Hong Kong) introduces the following five financial support initiatives:

1. Introducing principal moratorium for mortgage loans: This is an effort to relieve the pressure of making monthly repayments for the individual and commercial customers who are more severely affected by the novel coronavirus outbreak, including but not limited to those in retail, food and beverage, logistics, tourism, hospitality and entertainment industries. From now till 30 June 2020, customers may apply for principal moratorium of up to 6 months. Upon expiration, customers may apply to extend for another 6 months, subject to a maximum of 12 months in total. During such period, only interest payments have to be made while principal repayments are suspended, allowing more financial flexibility for customers. BOCHK will also waive the relevant handling fees for the application.

2. Launching a special loan scheme for SMEs to relieve the epidemic impact: In order to support SMEs during this difficult time, from now till 30 June 2020, eligible customers may apply for such express loans without collaterals. Such loans will be approved as soon as within one day with cash available for withdrawal within three. The scheme offers preferential interest rates and a handling fee waiver. The maximum loan amount is $257, 504 (HKD 2,000,000) with a repayment period of up to 60 months. In addition, the Bank continues to provide support to SME customers through the SME Financing Guarantee Scheme (SFGS) or SME Loan Guarantee Scheme (SGS). Customers who apply for the SFGS or SGS through BOCHK may apply for principal moratorium of up to 6 months. Upon expiration, customers may apply to extend for another 6 months, subject to a maximum of 12 months in total. During such period, only interest payments have to be made while principal repayments are suspended. New applicants under the SFGS and SGS through BOCHK will enjoy a handling fee waiver for loan application and account opening. New applicants under the SFGS will enjoy a guarantee fee rebate of up to $12,875 (HKD100,000).

3. Providing support in ensuring the supply of medical resources: In an effort to ensure the supply of medical resources for protection against the epidemic, BOCHK will provide financial support to enterprises that manufacture medical and anti-epidemic supplies, protection equipment and pharmaceuticals to help them increase production capacity. We will give priority to customers in processing account opening, global remittance, payment settlement and donation related to the purchase of medical supplies. All handling fees will be waived.

4. Offering insurance grace periods and additional protection: A grace period for premium payment will be extended to 30 June 2020 if customers are unable to pay on time their premium of the designated life insurance plans of BOC Life. In addition, in view of the novel coronavirus outbreak, from now till 30 April 2020, BOC Life is offering extended cover that optimises protection and services, with simplified claims procedures and priority claims approval. In the unfortunate event that the insured under personal insurance policies has been diagnosed with novel coronavirus during the coverage period, BOC Life will offer a number of benefits, including an additional daily hospital cash payment of $64 (HKD 500), the inclusion of novel coronavirus in the “Infectious Disease Protection – Isolation Ward” benefit, and a one-time mandatory quarantine cash allowance of $257 (HKD 2,000) to “Hospital Cash Benefit” customers.

5. Offering fee concessions or waivers: In order to support community efforts against the outbreak, BOCHK has introduced a number of fee concessions for its electronic services in order to facilitate customers’ use of electronic platforms such as Mobile, Internet and Phone Banking. In addition, during this critical time, if customers fail to repay their mortgages, personal loans and credit card on time due to special circumstances, they may apply for waivers of relevant penalties, interests and late payment fees

Re-disseminated by The Asian Banker