The Association of Banks in Malaysia (ABM) and the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) said the banking industry stands ready to offer repayment assistance for borrowers and customers in light of the reintroduction of Movement Control Order (MCO) in several states and federal territories.
The Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) said in a joint statement yesterday that banks will continue to extend repayment assistance including an extension of the existing moratorium where applicable, to individuals affected by the current MCO.
On different note, the banks have also announced an extension of the repayment assistance for victims of the recent floods in several states.
According to the associations, the extension will apply to all targeted repayment assistance schemes announced previously
According to the associations, the extension will apply to all targeted repayment assistance schemes announced previously. In particular, borrowers and customers who have lost their jobs last year or in 2021 can apply for payment relief for a period of three months any time on or before June 30, 2021.
Furthermore, individuals who are still in employment but have experienced a reduction in income due to the COVID-29 pandemic may apply to lower their instalment amount in line with their income reduction, said the associations.
Individuals in the B40 group may request either a 3-month deferment of instalment or to reduce their instalments by 50% for 6 months
The associations further explained that for those in the middle 40% of household income group (M40) who are recipients of Bantuan Prihatin National, the banks have agreed to allow self-declarations.
Meanwhile, affected individuals in the bottom 40% of household income group (B40) who are registered in the Bantuan Sara Hidup or Bantuan Prihatin Rakyat database may request for either a three-month deferment of instalment or to reduce their instalments by 50% for six months.
Microenterprises can also request for deferment of instalment
For microenterprises, the banks have also ready to offer repayment assistance. Microenterprises with loans or financing where the original facility amount is up to RM150,000, they may request for either a three-month deferment of instalment or to reduce their instalments by 50% for six months.
“The repayment assistance for B40, M40 and microenterprises are applicable for loans and or financing approved before Oct 1, 2020, and are not in arrears for more than 90 days on the date the request for repayment assistance is submitted to the bank.
As at Dec 31, 2020, the associations revealed that over 1.3 million applications for repayment assistance had been received, with an approval rate of 95%
“In this regard, given this challenging period, the banking industry would like to encourage borrowers and customers with existing repayment package arrangements, who have difficulties resuming their regular instalment schedules, to approach the banks for further repayment assistance.
“The acceptance of the targeted repayment assistance during this period will not appear in the borrowers’ and customers’ CCRIS (Central Credit Reference Information System) report,” they said.
All other borrowers and customers facing difficulties in making loan or financing repayments are also welcome to contact their banks to discuss suitable repayment packages that meet their specific circumstance, they said.