Banks continue to offer repayment assistance

KUALA LUMPUR: The banking industry stands ready to assist borrowers or customers in light of the reintroduction of the Movement Control Order (MCO) in a number of states and Federal Territories.

According to a joint statement by the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), banks will continue to extend repayment assistance, including an extension of existing moratorium where applicable, to individuals who have been affected by the current MCO.

The banks have also announced an extension of the repayment assistance for victims of the recent floods in several states. Please contact your banks to request for targeted repayment assistance.

The extension will apply to all Targeted Repayment Assistance schemes announced previously. In particular, those borrowers or customers who have lost their jobs in 2020 or 2021 can apply for payment relief for a period of three months any time on or before June 30, 2021.

Further, individuals who are still in employment but have experienced a reduction in income due to the pandemic may apply to lower their instalment amount in line with their income reduction.

Specifically for those in the Middle 40 per cent (M40) group who are recipients of the Bantuan Prihatin National, banks have agreed to allow for self-declarations.

Individuals in the Bottom 40 per cent (B40) category who are registered in the Bantuan Sara Hidup or Bantuan Prihatin Rakyat database may request for either a three-month deferment of instalment, or to reduce their instalments by 50 per cent for six months.

Microenterprises with loans or financing where the original facility amount is up to RM150,000 may request for either a three-month deferment of instalment, or to reduce their instalments by 50 per cent for six months.

The repayment assistance for B40, M40 and microenterprises are applicable for loans or financing approved before October 1, 2020 and are not in arrears for more than 90 days on the date the request for repayment assistance is submitted to the bank.

All other borrowers or customers facing difficulties in making loan or financing repayments are also welcome to contact their banks to discuss suitable repayment assistance packages that meet their specific circumstances.

As at December 31, 2020, over 1.3 million applications for repayment assistance have been received, with an approval rate of 95 per cent.

In this regard, given this challenging period, the banking industry would like to encourage borrowers or customers with existing repayment assistance arrangements who have difficulties resuming their regular installment schedules to approach the banks for further repayment assistance.

The acceptance of the targeted repayment assistance during this period will not appear in the borrowers’ or customers’ CCRIS (Central Credit Reference Information System) report.

“Banks remain committed to helping our customers who continue to face challenges in the current environment,” ABM chairman and Maybank group president and chief executive officer (CEO) Datuk Abdul Farid Alias said.

“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.”

Meanwhile, AIBIM president and RHB Islamic CEO Dato’ Adissadikin Ali said that while we are entering a challenging period, he is confident the country is better prepared and so are both the banking fraternity and public at large.

“The communication between the affected customers and banks must continue to happen to ensure the benefit for both parties,” Adissadikin added.

“The payment assistance is still available for those affected.”

The banking industry is committed to ensuring an easy and convenient process for borrowers or customers to apply or request for repayment assistance.

In most cases, borrowers or customers should be able to apply and complete the application online or over the phone.

Borrowers or customers may also apply at bank branches, but are advised to check on their respective banks’ websites for information on any changes in operating hours or arrangements for over-the-counter services.

For the safety of borrowers or customers and bank employees, banks are operating with heightened vigilance and adherence to the Covid-19 standard operating procedures (SOPs) and would encourage the public to carry out their banking transactions via digital channels where possible.

Members of the public may also inquire on repayment assistance through ABMConnect at https://www.abm.org.my/ eabmconnect or AIBIM via email to staff@aibim.com .

Borrowers or customers who are still facing difficulties after consultation with their banks can contact BNMTELELINK at https://telelink.bnm.gov.my/ and for information on targeted repayment assistance, visit https://www.bnm.gov.my/o/ covid-19/tra_en.html .

Alternatively, borrowers or customers can also seek guidance and explore other options for assistance with AKPK by calling 03-2616 7766.

Banks remain committed to helping our customers who continue to face challenges in the current environment.

Datuk Abdul Farid Alias