KUALA LUMPUR, Malaysia (July 6): In line with Prime Minister Tan Sri Muhyiddin Yassin’s PEMULIH stimulus package, Bank Negara Malaysia (BNM) said applications for the six-month loan moratorium will be accepted starting tomorrow (July 7). Individuals, microenterprises, and small and medium enterprises (SMEs) affected by the epidemic can apply, according to BNM, and opting in for the moratorium or any alternative repayment packages will be simple, with no need for supporting documents.
Approvals will be granted automatically, according to the central bank.
“In addition to the moratorium, banks will provide payment reductions and additional packages, including the ability to reschedule and restructure financing to meet borrowers’ unique financial circumstances,” the bank stated.
Borrowers will be able to submit their applications using a web form or an auto-generated email that will be available on banks’ websites, where they will be asked to give personal and financial information.
Those who are interested can also call their banks for assistance and guidance, or go to bank branches to submit their requests for the moratorium, though BNM advised these borrowers to check with their banks for any changes in operating hours or arrangements for over-the-counter services due to movement restrictions.
It stated that the repayment assistance is only available for loans issued before to July 1 and that borrowers must not have missed more than 90 days of payments or be in bankruptcy or winding up procedures at the time the request is filed.
“To be clear, borrowers who are currently enrolled in a repayment assistance program and are servicing their debt in line with the program’s rules will be permitted to participate in this moratorium.”
“Individual and SME borrowers with financing who have missed payments for more than 90 days are encouraged to contact Agensi Kaunseling dan Pengurusan Kredit (AKPK) for suitable repayment assistance and free financial advice (services.akpk.org.my),” according to BNM.
SMEs, including microenterprises, can also seek support through AKPK’s specialized SME Help Desk at akpk.org.my/smehelpdesk, which offers free financial advice and processes repayment aid applications.
However, the bank noted that choosing repayment aid will raise the overall cost of borrowing because interest/profit will continue to accrue on deferred payments, and that banks must educate borrowers about how instalment amounts and the financing term will be affected.
“If a borrower wishes that reduced instalments (rather than original amounts) be maintained after the moratorium, the loan tenure will be prolonged for a longer period.” During the term of support, banks will not levy interest on interest, profit on profit (i.e. compounding interest/profit), or penalty interest/profit,” it stated.
According to BNM, any sort of repayment help obtained in 2021 will have no impact on borrowers’ Central Credit Reference Information System (CCRIS) records.
The central bank said it will closely monitor the banking industry’s implementation of the repayment assistance program, and that borrowers can file complaints with BNM TELELINK at bnm.my/RAsurvey if they have problems with their banks or if their instalments are increasing arbitrarily.
Borrowers can also learn more about the expanded repayment aid program by going to bnm.gov.my/RA and following BNM on social media./n
