KUALA LUMPUR – All Malaysians will now enjoy a six-month loan moratorium beginning next month, as part of the government’s latest round of stimulus packages in light of the Covid-19 pandemic.
Prime Minister Tan Sri Muhyiddin Yassin said all individuals, regardless of their income status, will be given the benefit, with borrowers only having to file to their respective banks.
He said the decision was made having taken into consideration that those in the middle- and higher-income group have also seen an increase to their financial commitment from assisting family members affected by the pandemic.
“A six-month moratorium will be given to all individual borrowers, whether they are from the B40, M40, or T20 groups, as well as micro-businesses,” he said in announcing the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih) today.
“There will be no more conditions such as salary cuts or job losses, and no need for documentation when making applications. You just need to apply, and automatic approval will be given.
Muhyiddin said applications for the loan moratorium will begin on July 7, with borrowers just required to sign an agreement on the amendments to the related loan conditions.
He added that this initiative will also be extended to small and medium enterprises that are affected by the pandemic, subjected to checks and approval by the banks.
“I hope this initiative will more or less assist individual borrowers and SMEs in managing their cash flow during these trying times.
“However, I would like to remind everyone to use this offer wisely, and if there is no pressing need, don’t increase your financial commitment.”
Moratoriums were also announced for student loans, including the National Higher Education Fund Corporation, with the postponement period varying between the different loan providers.
Muhyiddin said takaful and insurance policy holders affected by the pandemic can also now apply for repayment deferment on an opt-in basis, to last until December.
Separately, he also announced a new incentive under the Employees Provident Fund (EPF) called i-Citra.
Similar to how the previous i-Sinar programme worked, the prime minister said, i-Citra will allow EPF contributors to withdraw a further RM5,000 from their accounts, subject to their balance.
He said a fixed payment of RM1,000 per month for five months will be deposited to the account holder, with 12.6 million EPF contributors set to benefit.
“The implementation of this incentive is expected to see RM30 billion be channelled to the rakyat to support their daily needs.”
Applications can be done via icitra.kwsp.gov.my beginning July 15, with the first payment expected to be credited in August. – The Vibes, June 28, 2021
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