Banks to continue supporting affected individuals and businesses via extended repayment assistance

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The Association of Banks in Malaysia (ABM) and the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) has announced that banks will continue to extend repayment assistance, especially the existing moratorium, to those affected by the Movement Control Order (MCO).

The banks also announced an extension of the repayment assistance for those affected by the floods in several states in Malaysia and will apply to all previously announced Targeted Repayment Assistance schemes.

Those who lost their jobs in 2020 or 2021 can apply for payment relief for a period of three months any time on before June 30.

People who are in employment but have experienced a reduction of income due to Covid-19, can apply to lower the instalment amount in line with the income reduction. Banks have agreed that the recipients of the Bantuan Prihatin National within the M40 group are allowed for self-declaration.

Individuals in the B40 group who are registered in the Bantuan Sara Hidup or Bantuan Prihatin Rakyat, may request for either a 3-month deferment of instalment, or to reduce their instalments by 50 percent for six months.

Microenterprises, with loan or financing where the original facility amount is up to RM150,000, can also request for between a three-month deferment of instalment or to reduce their instalments by 50 percent in six months.

The repayment assistance is applicable for loans or financing approved before October 1, 2020 and are not in arrears for more than 90 days on the date of the request for the assistance submitted to the bank.

The acceptance of the targeted repayment assistance during this period will not appear in the borrowers/customers Central Credit Reference Information System (CCRIS) report.

“Banks remain committed to helping the customers, especially in this environment. Banks are able to customise the financial assistance schemes to specific circumstances so the affected individuals can stabilise their financial situation promptly,” said the Chairman of ABM and Maybank Group President and Chief Executive Officer (CEO), Abdul Farid Alias.

“The communication between the affected customers and banks must continue to happen to ensure the benefit for both parties,” added Adissadikin Ali, the President of AIBIM and RHB Islamic CEO.

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