Banks continue to offer repayment assistance for borrowers


BANKS will continue to extend targeted repayment assistance, including an extension of existing moratoriums to those who have been affected by the reimposition of the movement control order (MCO).

In a joint statement today, the Association of Banks in Malaysia (ABM) and the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) said in light of the assistance, banks have also announced an extension of the repayment assistance to flood victims in several states.

“The extension will apply to all Targeted Repayment Assistance schemes announced previously. In particular, those borrowers or customers who have lost their jobs in 2020 or 2021 can apply for payment relief for a period of three months any time on or before June 30, 2021,” it said.

Individuals who have faced a reduction in income as a result of the pandemic are also eligible to lower their instalment amount in line with their income reduction.

For those in the M40 group who are recipients of the Bantuan Prihatin Nasional, the associations said banks have agreed to allow for self declarations.

Borrowers or customers from the B40 income group who receive Bantuan Sara Hidup or Bantuan Prihatin Rakyat may opt for either a three-month deferment or instalment or to reduce their instalments by half for six months. Similar options are also given to microenterprises with loans or financing with an original facility amount of up to RM150,000.

“The repayment assistance for B40, M40 and microenterprises are applicable for loans 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.

“All other borrowers or customers facing difficulties in making loan or financing repayments are also welcome to contact their banks to discuss suitable repayment assistance packages that meet their specific circumstances.”

ABM chairman and Maybank Group president and CEO Datuk Abdul Farid Alias said the banks remain committed in helping their customers who continue to face challenges in the current environment.

“We are able to customise our financial assistance schemes to the specific circumstances of the borrowers so that they can quickly stabilise their financial situation and focus on other aspects of their lives which may need more pressing attention,” he added.

President of AIBIM and RHB Islamic CEO Datuk Adissadikin Ali said he is confident that the country as well as the banking fraternity and the public are better prepared this time around despite entering a challenging period.

As at Dec 31, 2020, over 1.3 million applications for the repayment assistance have been received by the banks and 95% of them were approved.

The associations assured that the acceptance of the targeted repayment assistance during this period will not appear in the borrowers’ and customers’ Central Credit Reference Information System report.

“In this regard, given this challenging period, the banking industry would like to encourage borrowers/customers with existing repayment assistance arrangements who have difficulties resuming their regular instalment schedules to approach the banks for further repayment assistance.”