KUALA LUMPUR – Borrowers who wish to take up the offer of a six-month loan moratorium under the government’s Economic Recovery and People’s Protection Package (Pemulih) can begin applying from tomorrow.
In a statement, Bank Negara Malaysia (BNM) said those affected by the Covid-19 pandemic – whether individuals, micro businesses or small and medium enterprises – do not need to provide supporting documents, as approval will be granted automatically.
“In addition to the moratorium, banks will offer a reduction in instalments and other packages, including rescheduling and restructuring financing to suit borrowers’ specific circumstances.”
Borrowers can apply through a web form, an auto-generated email from their respective banks, or a phone call with their banks.
Alternatively, they can visit bank branches to submit their application, and are advised to first check on the operating hours and availability of counter services.
BNM said the repayment assistance is applicable to financing approved before July 1, and that borrowers must not have missed instalments by more than 90 days, or else, they are subjected to bankruptcy.
“For clarity, borrowers already under a repayment assistance programme and are servicing their financing in accordance with the terms of the programme will be able to opt in for this moratorium.”
It said those who have defaulted for over 90 days should contact the Credit Counselling and Management Agency to obtain repayment assistance or advice.
Opting for repayment assistance will increase the overall cost of borrowing, as interest or profit will continue to accrue on deferred payments, cautioned the lender.
It said banks have been instructed to provide borrowers with information on how their instalment amounts and financing tenure will be impacted.
“When a borrower requests to maintain lower instalments after the moratorium ends, this will result in the loan tenure being extended.
“Banks will not charge interest on interest, or profit on profit (i.e. compounding interest or profit), or impose any penalty interest or profit, during the assistance period.”
Borrowers’ records in the Central Credit Reference Information System will not be affected by any form of repayment assistance received this year, it added. – The Vibes, July 6, 2021
