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KUALA LUMPUR: Payment assistance will continue to be available to borrowers whose income has been affected by the Covid-19 pandemic, Bank Negara Malaysia said.
In a statement Monday that, depending on their circumstances, challenged borrowers have generally requested reductions in monthly payment installments or an extension of the moratorium.
“Borrowers who declined payment assistance for now could still apply for specific assistance during 2020 and through 2021 if their financial circumstances change in the future,” he said.
Bank Negara said the scale of targeted repayment assistance is unprecedented in Malaysian banking history.
It ensured that assistance continues to be provided to borrowers from a variety of income groups, with special consideration for B40 households, micro-enterprises and borrowers affected by movement restrictions.
A specific approach to reimbursement assistance expands relief measures in a more sustainable way, while also fueling economic recovery.
He said many borrowers can now and have begun to resume payments. For this group, resuming repayments would be in their interest as this would lower the total cost of borrowing. If your financial circumstances change in the future, specific payment assistance would still be available.
He also said that borrowers who require assistance right now have the opportunity to customize their repayment plans based on what they can afford.
“If their circumstances are further questioned in the future, they would have more recent repayment records to facilitate further assistance from the banks,” he said.
The financial resources of the banking system can be prioritized to help those most affected by COVID-19. As more borrowers who can afford to repay do so, more assistance can be offered to borrowers in need.
Bank Negara said that the public has entrusted the banks with managing their savings.
The public, as depositors, expects banks to meet their fiduciary obligation by managing these funds prudently and using them to lend the economy for productive purposes.
In addition, banks raise capital from institutional funds, such as those that manage Malaysians’ pensions, retirement funds, and investments. Therefore, it is important to preserve a healthy credit culture where borrowers who can afford it will.
Bank Negara said more than 640,000 requests for payment assistance have been received, with an approval rate of around 98%.
The types of packages that banks offer reflect the borrowers’ financial needs and circumstances.
Of those approved:
He said 40% were granted an extension of the moratorium. These mainly consisted of people who have recently become unemployed, as well as companies in sectors that may still be experiencing significant operational constraints caused by the pandemic.
Then another 60% received a reduction in fees. Borrowers who have requested a reduction in installments include those in the B40 group. These fee reductions put individuals and SMEs on the path to beginning to repay their loans, at levels they are comfortable with.
Among people who have applied for payment assistance to date, approximately 50% have a monthly income of RM5,000 or less.
Meanwhile, 28% are those with a monthly income between RM5,000 and RM10,000.
Borrowers in other segments in need of assistance are also being supported, including those with variable incomes and those employed in the worst affected sectors, such as tourism.
“Requests for payment assistance any time before June 30, 2021 will also not appear in the borrower’s CCRIS records.
“There are no processing fees / charges associated with requests for payment assistance for individual borrowers and SMEs.
“To obtain specific assistance, borrowers must apply directly to their respective banks,” he said.
Bank Negara urged the public to visit https://www.bnm.gov.my/tra for more information on whether they need specific assistance and qualified assistance.
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