KUALA LUMPUR – The banking industry stands ready to assist borrowers and customers in light of the reintroduction of the movement control order (MCO) in various states and the Federal Territories.
In a joint statement yesterday, the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) said banks will continue to extend repayment assistance, including an extension of the existing moratorium where applicable, to individuals affected by the MCO.
They said banks have also announced an extension of the repayment assistance for victims of the recent floods in several states and urged that in need of targeted repayment assistance to contact their banks.
It is learnt the extension will apply to all targeted repayment assistance schemes announced previously.
"In particular, borrowers and customers, who have lost their jobs in 2020 or 2021 can apply for payment relief for a period of three months 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% of households income group (M40), who are recipients of the Bantuan Prihatin National plan, the banks have agreed to allow self-declarations,” they said.
Meanwhile, individuals in the bottom 40% of households income group (B40) 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% for six months.
For micro-enterprises with loans or financing where the original facility amount is up to RM150,000, they may request for either a three-month deferment of instalment or to reduce their instalments by 50% for six months, said the associations.
They said the repayment assistance for B40, M40 and micro-enterprises are applicable for loans and financing approved before October 1 last year, 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 customers facing difficulties in making loan or financing repayments can also contact their banks to discuss suitable repayment assistance packages that meet their specific circumstance, they said.
According to the associations, as at December 31, more than 1.3 million applications for repayment assistance have been received, with an approval rate of 95%.
“In this regard, given this challenging period, the banking industry would like to encourage borrowers and customers with existing repayment assistance arrangements who have difficulties resuming their regular instalment 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’ CCRIS (Central Credit Reference Information System) report,” they said.
ABM chairman and Malayan Banking Bhd (Maybank) group president and chief executive officer (CEO) Datuk Abdul Farid Alias said banks remained committed to helping their customers facing challenges in the current environment.
“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,” he said.
AIBIM president and RHB Islamic Bank Bhd CEO Datuk Adissadikin Ali said while entering a challenging period, he is confident that the country is better prepared, as are the banking fraternity and the public.
“Communications between affected customers and the banks must continue for the benefit of both parties. The payment assistance is still available for those affected,” he said.
The associations also noted that the banking industry is committed to ensuring an easy and convenient process for customers to apply or request for repayment assistance.
In most cases, they said customers should be able to apply and complete the application online or over the phone, and 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 customers and bank employees, banks are operating with heightened vigilance and adherence to the Covid-19 standard operating procedures (SOPs) and encourage the public to carry out their banking transactions via digital channels where possible, they added. – Bernama, January 18, 2021