Banks to continue repayment assistance in MCO-affected areas

PETALING JAYA: Banks will continue to extend repayment assistance, including an extension of the moratorium where applicable, to those affected by the latest movement control order (MCO) imposed on a number of states and federal territories.

In a joint statement, the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) said the industry is ready to assist its borrowers and customers.

Extensions will apply to all previously announced Targeted Repayment Assistance schemes. Those who have lost their jobs in 2020 or 2021 may apply for payment relief for three months any time before the end of June.

The banks said anyone who had suffered a loss of income due to the pandemic but are still employed may apply to lower their instalment amounts in line with their reduction in income.

For M40 borrowers registered under the Bantuan Prihatin Nasional scheme and whose household incomes have been reduced due to the pandemic, banks will accept the borrower’s self-declaration as evidence of reduced household incomes.

Borrowers in the B40 category registered in the Bantuan Sara Hidup or Bantuan Prihatin Rakyat database may request for a three-month deferment of instalment, or pay only half of their instalments for a period of six months.

Microenterprises with loans or financing where the original principal amount is under RM150,000 may also request for the same relief as that of the B40 group.

These assistance plans are applicable for loans approved before Oct 1, 2020 and are not in arrears for more than 90 days when the request is submitted.

The associations said all other customers and borrowers seeking assistance are welcome to contact their banks to discuss suitable alternative plans that meet their needs.

ABM chairman Abdul Farid Alias said banks remain 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.”

AIBIM president Adissadikin Ali said he is confident the country and industry is well prepared to deal with the current challenges.

“The communication between the affected customers and banks must continue to happen to ensure the benefit for both parties. The payment assistance is still available for those affected.”

As of Dec 31, 2020, 95% of the 1.3 million applications for repayment assistance had been approved.