Chase Manhattan Bank is extending efforts to encourage good repayment habits to mortgage holders by launching a Repayment Rewards Mortgage scheme.
Borrowers will be able to enjoy annual cash bonuses equal to 0.25 per cent of the loan amount granted if they have not been more than 30 days overdue on any monthly instalment in the first three years.
Vice-president for retail banking Eric Tong said the new scheme, together with a similar one for unsecured consumer lending launched earlier this week, represented a substantial change in the way commercial banks treated their loan loss provisions.
'We now treat loan loss provisions not only as a risk management factor but also a cost factor which can be used to make our products more attractive while at same time improving our asset quality,' he said.
