The banking industry is ready to assist the borrowers or their customers who are affected following the re-implementation of the Movement Control Order (PKP) in several states.
In a joint statement yesterday, the Association of Banks Malaysia (ABM) and the Association of Islamic Banking Institutions Malaysia (AIBIM) said the financial institutions involved would continue to extend repayment assistance, including extending the existing moratorium on individuals proven to be affected by PKP.
At the same time, banks have also announced extended repayment assistance for related flood victims and they have been asked to contact their respective banks for that purpose.
According to ABM and AIBIM, the extension involves all targeted repayment assistance schemes that have been announced previously.
"This mainly involves customers who have lost their jobs in 2020 or 2021. They can apply for the assistance for a period of three months at any time on or before 30 June 2021.
"Besides, individuals who are still working but their income is reduced following this pandemic, can also apply to reduce the amount of payment installments.
"For the M40 households who are also recipients of the National Caring Aid (BPN), the banks have allowed them to make a self-declaration," the association said as reported by Bernama.
B40 households registered with the Subsistence Assistance (BSH) or Bantuan Cihatin Rakyat (ACA) database can apply for either a three-month installment payment exemption or a 50 percent installment reduction of six months.
Micro entrepreneurs with loans / financing involving the original amount up to RM150,000, can apply for either a three-month installment deferment or a 50 per cent installment reduction for six months.
According to ABM and AIBIM, the repayment assistance for B40, M40 and the micro enterprises is for loans / financing approved before 1 October 2020 and not overdue for more than 90 days from the date of repayment assistance submitted to the bank.
In addition, all other borrowers / customers who also face difficulties in repaying their loans / financing, can also contact the bank to discuss a repayment package that suits their situation.
According to the association, as of 31 December 2020, more than 1.3 million applications for repayment assistance have been received with an approval rate of 95%.
“In line with this challenging period, the banking industry would like to encourage borrowers / customers who have existing repayment arrangements and find it difficult to continue the obligation to contact their bank for further assistance.
"Receiving targeted repayment assistance during the period will not be included in the Central Credit Reference Information System (CCRIS) report," said the association.
Meanwhile, ABM Chairman and President / Chief Executive Officer (CEO) of Kumpulan Malayan Banking Bhd (Maybank), Datuk Abdul Farid Alias said, banks also remain committed to helping customers affected by the current situation.
"We can arrange financial assistance schemes according to the specific circumstances of the borrowers so that they can stabilize the financial situation and focus on life that needs more attention," he explained.
AIBIM President and CEO of RHB Islamic Bank Bhd, Datuk Adissadikin Ali is confident that both the country and the banks and the public are now better prepared to face this difficult period.
"Therefore, communication between the affected customers and the bank must continue for the benefit of both parties. This payment assistance is still available for those affected, "he said.
In the meantime, added ABM and AIBIM, banks are also committed to ensuring a simple and smooth process for borrowers or customers to apply for the relief of the repayment assistance.
In most cases, those involved can apply and complete the application online or by phone in addition to applying at the bank branch.
However, they are also advised to check the respective bank's website for information on changes in operating hours or service arrangements at the counter.
In the meantime, for the safety of customers and bank employees, the financial institution involved also operates in compliance with the standard operating procedures set following the pandemic and the public is encouraged to conduct online banking transactions or other digital channels.
