Banks announce new loan repayment assistance for B40, micro-enterprises

 

The Association of Banks said only loans approved before Oct 1 and not in arrears exceeding 90 days would be eligible.

PETALING JAYA: The ongoing targeted repayment assistance for those who have borrowed from financial institutions has been enhanced and been made available to the B40 category, whose financial position has been particularly affected by the Covid-19 pandemic, said the Association of Banks in Malaysia (ABM).

In a statement today, the association said the B40 borrowers comprised Bantuan Sara Hidup (BSH)/Bantuan Prihatin Rakyat (BPR) recipients and micro-enterprises with loans, where the original facility amount was up to RM150,000.

It said under this enhanced targeted repayment assistance, beginning in December, eligible borrowers will have two options — a three-month deferment of instalment payment or a 50% reduction in instalment payments for six months.

ABM said only loans that were approved before Oct 1 this year and which are not in arrears exceeding 90 days at the date of request by the borrower would be eligible for this new facility.

As for married couples who are eligible for BSH/BPR, based on household income, both husband and wife will be eligible for this package if they have bank loans.

“Those who opted out of the blanket moratorium, which was announced in March 2020, are also eligible for this enhanced targeted repayment assistance,” it said.

ABM said the enhancement to the targeted payment assistance would be effective from Dec 1 to June 30, 2021, adding that the banking industry would provide further updates on its details next week.

“Borrowers may also submit their requests and confirmation of the repayment assistance required to their banks via the channels provided by the banks, from Nov 23 to June 30, 2021,” it added. - FMT