Repayment assistance for those affected by new MCO - banking associations

 

The banking industry stands ready to assist borrowers and customers in light of the reintroduction of the movement control order (MCO) in a number of states and federal territories.

In a joint statement yesterday, the Association of Banks in Malaysia (ABM) and the Association of Islamic Banking and Financial Institutions Malaysia (Aibim) said banks will continue to extend repayment assistance, including an extension of existing moratorium where applicable, to individuals affected by the MCO.

They said banks also announced an extension of the repayment assistance for victims of the recent floods in several states. Please contact the banks to request for targeted repayment assistance.

It was noted that the extension will apply to all targeted repayment assistance schemes announced previously.

‘In particular, borrowers/customers, who lost their jobs in 2020 or 2021, can apply for payment relief for a period of three months any time on or before Jun 30, 2021.

“Further, individuals, who are still in employment but have experienced a reduction in income due to the pandemic, may apply to lower their instalment amount in line with their income reduction.

“Specifically for those in the middle 40 percent of household income group (M40), who are recipients of Bantuan Prihatin National, the banks have agreed to allow self-declarations,” they said.

Meanwhile, individuals in the bottom 40 percent of household income group (B40), who are registered in the Bantuan Sara Hidup or Bantuan Prihatin Rakyat database, may request for either a three-month deferment of instalment or to reduce their instalments by 50 percent for six months.

For micro-enterprises with loans or financing where the original facility amount was up to RM150,000, they may request for either a three-month deferment of instalment or to reduce their instalments by 50 percent for six months, said the associations.

They said 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 and 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 circumstance, they said.

According to the associations, as at Dec 31, 2020, over 1.3 million applications for repayment assistance had been received, with an approval rate of 95 percent.

“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.

“The acceptance of the targeted repayment assistance during this period will not appear in the borrowers’/customers’ CCRIS (Central Credit Reference Information System) report,” they said.

ABM chairperson and Malayan Banking Bhd group president and CEO Abdul Farid Alias said banks were committed to helping 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 said.

Aibim president and RHB Islamic Bank Bhd CEO Adissadikin Ali said while entering a challenging period, he is confident the country is better prepared and so are both the banking fraternity and the public.

“Communications between affected customers and banks must continue to happen for the benefit of both parties. The payment assistance is still available for those affected,” he said.

The associations also noted that the banking industry is committed to ensuring an easy and convenient process for borrowers and customers to apply or request for repayment assistance.

In most cases, they said borrowers and customers should be able to apply and complete the application online or over the phone.

They may also apply at bank branches but were advised to check on their respective banks' websites for information on any changes in operating hours or arrangements for over-the-counter services.

For the safety of borrowers, customers, and bank employees, banks are operating with heightened vigilance and adherence to the Covid-19 standard operating procedures and encourage the public to carry out their banking transactions via digital channels where possible, they added.

- Bernama