KUALA LUMPUR, Malaysia (June 29) – In line with the government’s PEMULIH stimulus, the Association of Banks in Malaysia (ABM) and the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) announced today that its member banks will give a six-month moratorium starting July 7. The organizations noted in a joint statement that they are aware that the rakyat are still facing financial difficulties as a result of the National Recovery Plan’s Phase 1 lockout.
According to them, all individuals (including all B40, M40, and T20 borrowers/customers), microenterprises, small and medium enterprises, and individuals who have been affected by the Covid-19 pandemic will be offered a six-month moratorium on instalments of all credit facilities (excluding credit cards) on an opt-in basis.
Banks would offer to convert outstanding credit card balances into a three-year term loan/financing with reduced interest/profit rates to help borrowers better manage their debt, they claimed.
They further stated that under the plan, borrowers and consumers just need to contact their banks to opt in to benefit from the moratorium, and that all borrowers/customers will receive automatic permission.
“Banks are committed to making the procedure as simple and seamless as possible,” they added, adding that no supporting documentation is required upfront for approval.
They went on to say that the moratorium applies to loans and funding issued before July 1 that haven’t been in arrears for more than 90 days at the time the request for moratorium is submitted to the bank.
Borrowers/customers who want to take advantage of the moratorium must contact their banks starting July 7th, according to the statement.
Borrowers/customers are urgently recommended to contact their banks through authorised digital channels such as the banks’ website, via email, or over the phone, they said, due to continued movement restrictions.
“If borrowers/customers are unable to use the banks’ digital channels, they may submit their request for a moratorium at a bank location.
“However, in light of the ongoing constraints imposed by the epidemic, they are urged to check their respective banks’ websites for information on any changes in operation hours or arrangements for over-the-counter services,” they said.
According to them, banks would make every effort to handle all moratorium requests as quickly as possible.
However, they warned that given the potential high amount of requests and the strict constraints on working protocols that all member institutions are operating under, there may be some initial operational issues.
“Borrowers/customers can be assured that member institutions are fully committed to ensuring that any issues are resolved in a timely manner,” they said.
The Central Credit Reference Information System (CCRIS) records of borrowers/customers will be unaffected by opting in for this moratorium, according to Bank Negara Malaysia.
“As a result, borrowers/customers do not need to be concerned about the impact on their credit profile in the future,” they stated.
They also stated that Agensi Kaunseling dan Pengurusan Kredit (AKPK) is ready to provide the appropriate advice and support to individual borrowers/customers as well as microenterprises, including debt restructuring solutions.
They added that, in addition to contacting banks, microbusinesses can seek support through AKPK’s specialized microbusiness helpdesk at www.akpk.org.my/microhelpdesk.
They noted that the internet help desk provides free financial counseling and supports repayment assistance applications.
They also advised affected borrowers to contact BNMTELELINK at bnm.my/RAsurvey if their request for a moratorium has been denied by the banks or if they are still having problems after consulting with their banks.
Borrowers and consumers are cautioned, however, to be aware of con artists and to only sign up for the moratorium through legitimate bank channels.
“Borrowers/customers are also warned not to interact with any third parties claiming to be agents/representatives of the banks on matters connected to this new moratorium. “ABM and AIBIM member banks do not appoint or engage third parties or agents for the moratorium’s purposes “they stated Continue reading