Bank Islam extends targeted repayment assistance


BANK Islam Malaysia Bhd is continuing its Enhanced Targeted Repayment Assistance (ETRA) for customers adversely impacted by the Covid-19 pandemic.

In a statement yesterday, the bank said the measure is in line with Bank Negara Malaysia’s (BNM) calls for banking and financial institutions to assist borrowers based on their specific financial circumstances, following the reimposition of the Movement Control Order (MCO) nationwide.

In accordance with the bank’s existing TRA response, offered on a case-to-case basis, Bank Islam stated it will continue to offer distressed customers on the existing moratorium an additional three-month extension to defer their financing or a six-month extension on a reduced instalment payment schedule, coupled with simplified documentation requirements.

Bank Islam also assured the assistance remains available, including and not limited to only TRA, but also other forms of long-term assistance such as the rescheduling and restructuring options.

“Assistance is also applicable to customers across various income groups, micro-businesses and customers affected by the recent MCO,” noted the bank.

In support of the statements from BNM and Association of Islamic Banking and Financial Institutions Malaysia last Wednesday, Bank Islam urged customers previously on other forms of targeted repayment assistance and seeking further financial assistance to contact the bank.

“The alarming spike of Covid-19 cases around the country has forced the government to implement MCO 3.0.

“While we understand the importance of curbing the infection of the virus, we are also greatly aware of its implications on our customers’ financial health. Hence, Bank Islam is taking proactive measures to safeguard their wellbeing,” said Bank Islam CEO Mohd Muazzam Mohamed.

“Since the outbreak of Covid-19, Bank Islam has offered multiple options to alleviate the financial constraints on our customers. Bank Islam is aware that this pandemic has brought about many uncertainties and we continuously encourage our customers to assess their financial health.

“Our message has been very consistent since the onset of the pandemic. We are here to help you. If you need assistance, reach out to us, and we will do our level best to help you tide over this difficult period,” Mohd Muazzam added.

Bank Islam ETRA was announced on Nov 23, 2020, to assist customers seeking for three-month deferment or reduction of up to 50% monthly instalments for six months.

This financial assistance was offered to all financings approved before Oct 1, 2020, which are not in arrears for more than 90 days at the time of application. Previously, Bank Islam announced that the application for ETRA was to close at the end of June 2021.