ABM tells SMEs to seek advice from banks before moratorium ends
KUALA LUMPUR: The Association of Banks in Malaysia (ABM) has urged small and medium enterprises (SMEs) and those who are facing difficulties in repaying their loans once the moratorium ends on Sept 30, 2020 to discuss with and seek advice from their banks.
Its representative, Mohd Zaini Aris said the borrowers must plan a viable loan repayment strategy from now to ease their burden of obligation and to aggravate loan repayment failure.
“Borrowers must be prepared in terms of financial and mental obligation and must not wait to seek advice from their banks.
“If they are not prepared they might face difficulty in preparing the documentation (needed) to discuss with banks as it takes times,” he said during a webinar themed “Rescheduling and Restructuring (R&R) of Loans” organised by Bank Negara Malaysia yesterday.
On R&R, Mohd Zaini, who is also Malayan Banking Bhd (Maybank) head of consumer finance, said the purpose is to help borrowers continue with their businesses.
“More o en than not banks will try to help if the track record is good and the business is still running. As long as there is no legal action taken, they will try to help but subject to eligibility," he said.
Mohd Zaini brushed aside public perception that it is difficult to get new loans once one undertakes an R&R.
He said for performing loans, R&R would not affect the Central Credit Reference Information System (CCRIS) as they would be regularised and restructured.
However, for non-performing loans, he said once the loans were restructured, a six-month observation period would be applied before the CCRIS were untagged.
“Borrowers should not fear to discuss with their banks and must look into the long term. Even if R&R being rejected, we still have many ways to help our customers and will look into it on a case-by-case (basis) and not across the board. “Come and talk to us as we could advise the best way to manage your cash flow so that you could plan the best way to move forward,” he said.