Budget 2021: Targeted loan moratorium for B40 group

 

The government has responded to calls for more loan assistance with an enhanced targeted moratorium for the low-income B40 group and existing recipients of the Bantuan Sara Hidup (BSH) cash aid, who have loans of up to RM150,000. 

This is a departure from the previous blanket loan moratorium and an extension of the current targeted repayment assistance in place until Dec 30.

Finance Minister Tengku Zafrul Abdul Aziz, when tabling the Budget 2021 in the Dewan Rakyat, said the moratorium also targeted new recipients of the rebranded BSH, to be known as Bantuan Prihatin Nasional, and micro-entrepreneurs.

Zafrul said those eligible will have the option to either defer their payments for three months or reduce their payment rate by 50 percent for six months, beginning December.

All eligible applicants are required to contact their banks to select the chosen option and complete the documentation process.

For those in the M40 category, Zafrul also said the process to apply for loan repayment assistance would be eased.

To qualify, applicants need to only make a self-declaration of reduced incomes.

As of Oct 1, Zafrul said 650,000 applications for assistance were received, with a high approval rate of 98 percent.

At the same time, up to 85 percent of existing borrowers had resumed their loan payments at the end of the blanket moratorium, with no further request for assistance. - Mkini