Repayment Aid Remains Available For Borrowers

Repayment Aid Remains Available For Borrowers

Bank Negara Malaysia (BNM) assures borrowers that repayment assistance will continue until next year for borrowers whose income is affected by the pandemic.

he central bank, in a T statement, said that borrowers facing challenges have generally requested for reductions in monthly repayment instalments or extension of the moratorium.

“Borrowers who decline repayment assistance, for now, would still be able to apply for targeted assistance throughout 2020 and into 2021 if their financial circumstances change in the future. A targeted approach to repayment assistance extends relief measures more sustainably, while lending strength to the economic recovery,” it said.

BNM has urged affected borrowers to come forward to apply for repayment assistance with their banks through the various channels available. “Banks are required to respond to applications for targeted repayment assistance within five days for individual borrowers and within 14 days for small and medium enterprise (SME) borrowers. Borrowers who do not receive a response from their banks within these timeframes should contact BNMTELELINK (bnm.my/RAsurvey),” it said.

BNM said many borrowers are now able and have started to resume repayments which would help reduce the overall cost of borrowings. Those who require assistance have the opportunity to customise their repayment plans based on what they can afford.

It added that the financial resources of the banking system can be prioritised to help those most affected by COVID-19. As more borrowers who can afford to repay do so, more assistance can be made available to borrowers that need it.

The central bank said that borrowers affected by any Conditional Movement Control Order or Enhanced Movement Control Order can expect a prompt and seamless process even as banks in affected areas continue to operate under the appropriate standard operating procedures.

Bank Negara said more than 640,000 applications for repayment assistance were received as of 9th October 2020, with an approval rate of around 98%. Of those approved, it said 40% were granted an extension of the moratorium. These consisted mainly of individuals who have been recently made unemployed, as well as businesses in sectors that may still be experiencing significant operating constraints caused by the pandemic.

The other 60% received a reduction in instalments. Borrowers who have requested a reduction in instalments include those in the B40 group. These instalment reductions put individuals and SMEs on a path to start paying down their loans, at levels which they are comfortable with.

About 50% of individuals who requested repayment assistance to date have a monthly income of RM5,000 or less. Meanwhile, 28% are those with a monthly income between RM5,000 to RM10,000.

Borrowers in other segments who need assistance are also being supported, including those who earn variable incomes, and those employed in sectors that have been hardest hit such as the tourism sector. “Applications for repayment assistance at any time before end of June, 2021 will also not appear on a borrower’s CCRIS records. There are no processing fees/charges associated with applications for repayment assistance for individual and SME borrowers,” BNM said.

Bank Negara urged the public to visit https://www.bnm.gov.my/tra for more information on whether they need targeted assistance and qualifying assistance.