Moratorium for targeted group

by TMR / pic by BERNAMA

THE three-month loan moratorium will apply to any individual customers who have lost their employment as well as the recipients of Bantuam Sara Hidup and Bantuan Prihatin Rakyat, the Association of Banks in Malaysia (ABM) clarified today.

“Under the latest Targeted Repayment Assistance (TRA) programme, any individual customers who have lost their employment are eligible upon contacting their banks for either loan deferment (moratorium) for a period of three months or 50% reduction in the monthly instalment payment for a period of six months,” ABM said in a statement yesterday.

According to the association, those who have experienced a reduction in income (including household income) are eligible for a commensurate reduction in monthly instalments.

“B40 (bottom 40%) borrowers who are registered under Bantuan Sara Hidup (BSH)/Bantuan Prihatin Rakyat (BPR) are eligible to opt for this specific repayment assistance,” it added.

Prime Minister Tan Sri Muhyiddin Yassin said on Monday that the banking institutions are committed to continuing the loan repayment and moratorium initiatives for the B40 group, micro, small and medium enterprises (SMEs), and affected individuals that are not allowed to operate under the current Movement Control Order (MCO).

He said they are given options to choose automatic moratorium for three months or repayment reductions of 50% for six months.

The initiatives would be implemented immediately this month, with RM30 billion allocation.

Meanwhile, ABM said micro enterprises with loan facilities of not more than RM150,000 may also opt for this specific repayment assistance.

In addition, ABM announced that the TRA is now expanded to include all SME businesses that are not permitted to operate during the MCO with total lockdown, ie those that are not on the list of permitted sectors as issued by the National Security Council.

“All affected borrowers (individuals, micro enterprises and SMEs) who wish to avail of this latest TRA only need to contact their respective banks to indicate which option they want to choose,” ABM said further.

The banks will automatically approve all selections by borrowers that fulfil the aforementioned criteria.

For other affected borrowers, member banks have in place bespoke/customised rescheduling and restructuring schemes to help alleviate their burden, the association said.

 

Editor’s note: The story has been updated for better clarity