Requests for moratorium on repayment of six-month loans open today
PETALING JAYA: Individual and micro-business borrowers, as well as SMEs affected by the Covid-19 pandemic, could start requesting the six-month loan repayment moratorium from today (Wednesday), in accordance with the package announcement. national for the well-being of peoples and economic recovery. (Pemulih).
In this regard, Bank Negara Malaysia (BNM) has assured borrowers – whether individuals, microenterprises or SMEs – that opting for the moratorium or any other repayment program will be easy without borrowers need to provide supporting documents. Approval will be given automatically.
“In addition to the moratorium, banks will also offer reduced payments and other packages, especially to reschedule and restructure funding based on the specific financial situation of borrowers,” BNM said yesterday.
Borrowers can register online through an automatically generated web form or email that will be available on banks’ websites to provide their personal and financial information. Borrowers can also phone their banks and advice will be provided by the customer service manager. If borrowers cannot use these digital channels, they can visit their bank branches to submit their moratorium request.
However, they are advised to check with the respective banks for any changes in opening hours or arrangement for OTC services due to movement restrictions.
The repayment assistance is applicable for financing approved before July 1, 2021.
Borrowers must not have missed payments by more than 90 days or be subject to bankruptcy or liquidation proceedings at the time of filing the application for repayment assistance. For greater clarity, borrowers who already benefit from a repayment assistance program and who manage their financing in accordance with the terms of the program may opt for this moratorium.
Individual and SME borrowers who have financing more than 90 days overdue are advised to contact the Credit and Debt Management Agency (AKPK) for appropriate repayment assistance and free financial advice. . SMEs, including microenterprises, can also seek help through the AKPK’s dedicated SME Helpdesk. The virtual assistance service provides free financial advice and facilitates requests for reimbursement assistance.
“Borrowers are advised that opting for repayment assistance will increase the overall cost of borrowing, as interest / profits will continue to accrue on deferred payments,” BNM said.
Banks are required to provide borrowers with information on how payment amounts and the duration of funding will be affected. When a borrower requests to maintain lower installments (instead of the initial installments) after the moratorium, this would lead to an extension of the loan term. Banks will not charge interest on interest, profit on profit (i.e. interest / compound profit), or any interest / profit penalty during the assistance period.
Borrowers’ Central Credit Reporting System records will not be affected by any form of repayment assistance received in 2021.
“The banking industry has provided its commitment and assurance to help borrowers facing financial difficulties as a result of the foreclosure. In this regard, the BNM will closely monitor the implementation of the repayment assistance program by the banking sector.