98% approval rate for borrowers seeking targeted repayment assistance

by BERNAMA / pic by MUHD AMIN NAHARUL

THE banking industry has already processed the vast majority of applications received for targeted repayment assistance, with a 98 per cent approval rate for individuals and small and medium enterprises (SMEs) as of mid-September.

In a joint statement today, the Association of Banks in Malaysia and Association of Islamic Banking and Financial Institutions Malaysia said banks remain committed to support affected borrowers/customers as the targeted moratorium phase begins tomorrow.

The banking industry has adopted a simplified application and documentation process for targeted repayment assistance, they said.

Banks have also ensured that acceptance of the targeted extension of the moratorium and repayment flexibilities during this period would not appear in the Central Credit Reference Information System reports of individuals and SMEs.

“Borrowers/customers who have submitted applications for targeted repayment assistance to date but have yet to receive a response from their banks, can expect to hear from their respective banks very soon.

“Alternatively, borrowers/customers may also contact their bank to check on their application status if there is no update from the bank,” they said.

The joint statement said banks would like to reassure borrowers/customers that those who have applied for assistance with the relevant documents but have not heard back from their banks will not be penalised.

The banks are striving to process all applications for targeted repayment assistance as swiftly as possible, it said.

“The banking industry is cognisant that while the economy is recovering, many borrowers/customers may still be finding their footing and reorienting themselves amid new realities and uncertainties.

“If repayment obligations become a challenge in the coming months, borrowers/customers can be assured that the window to discuss alternative repayment arrangements will remain open,” the statement added.