CIMB Bank Berhad and CIMB Islamic Bank Berhad (collectively “CIMB” or “the Bank”) has introduced its Expanded Targeted Payment Assistance programme (“Expanded TPA” or “the Programme”), in line with the government’s recent announcement on additional assistance to B40 and microenterprise borrowers who have been affected by the pandemic.
Under the Expanded TPA, eligible borrowers under the following categories will be able to apply for a deferment of monthly instalments for 3 months or a 50% reduction in monthly instalments for 6 months:
1. B40 individuals registered under Bantuan Sara Hidup (“BSH”)/ Bantuan Prihatin Rakyat (“BPN”), with eligible facilities including Home Financing, Personal Financing, ASB Financing, Hire Purchase and Term Financing converted from credit card balances. For married couples registered under BSH/BPR based on household income, both husband and wife would be eligible for the Programme if they have financing with the Bank.
2. Microenterprises, as defined by SME Corp and including business entities across all sectors with sales turnover of less than RM300,000 per annum or less than 5 full-time employees, with any loan/financing facility with an approved value of up to RM150,000.
Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group said, “The additional support is a timely solution in order to help alleviate the livelihoods of the most vulnerable communities and provide a lifeline to micro businesses during this challenging period. CIMB stands ready to assist and will continue to prioritise the financial well-being and economic resilience of our customers through our Expanded TPA and other ongoing relief programmes. We are committed to delivering the best customer experience in the application process to give convenience to our customers. CIMB welcomes all individual and business customers who need financial assistance, regardless of whether they fall under any of the mentioned categories, to reach out and discuss existing assistance options with the Bank.”
Eligible borrowers can start to apply for the assistance from 23 November 2020 onwards, and it will take effect from the following month’s instalment upon a borrower’s request and confirmation of acceptance. The Programme is available from 1 December 2020 to 30 June 2021 for facilities approved before 1 October 2020 and are not in arrears exceeding 90 days as at date of request. As part of the application process, individual customers will be required to provide a self-declaration and confirmation of acceptance. Eligible microenterprises are encouraged to contact CIMB to apply for the Programme and will only be required to provide a self-declaration that their turnover is not exceeding RM300,000 or having less than 5 employees, via an e-form.
Additional documentation is not required by the Bank for customers to apply for the Expanded TPA. Eligible customers will only need to confirm their option of the 3-month deferment or 6-month 50% reduction in monthly instalments. However, Hire Purchase and fixed rate Islamic financing customers who wish to take up the Programme will be required to sign revised documentation in relation to their hire purchase/ fixed rate Islamic financing facility to indicate their acceptance of the revised terms with the Bank. This is in accordance with the Hire Purchase Act 1967 and Shariah requirements.
In addition to the expanded assistance, M40 borrowers registered under Bantuan Prihatin Nasional (“BPN”) who have suffered reduced incomes due to the pandemic may also apply for the existing targeted assistance programme. While this is an existing assistance programme, the process has been simplified as it will be based on borrowers’ self-declaration of reduced income for themselves and/or their household. The Bank may engage these customers at a later stage for documentation in order to review their financial circumstances.