CIMB To Offer Opt-In 6 Month Moratorium With Auto Approval

When the Prime Minister announced the latest aid package PEMULIH, the main item many Malaysian were anticipating for was the moratorium on bank loans and borrowings. Tan Sri Muhyiddin duly answered the requests, and under the RM150 billion stimulus, borrowings can expect an extension in repayment for up to 6 months.

In view of this, CIMB Bank has confirmed that it will be providing all individual including the B40, M40 and T20, microenterprise and affected small and medium enterprise an opt-in for a 6-month moratorium with approvals given automatically. Customers are also given alternative options to choose from, such as a 50% reduction in instalments for six months on credit facilities such as mortgages, ASB loans/ financing and variable rate credit facilities. Customers can also opt for a 3-month moratorium for hire purchase facilities while for credit cards, customers can convert their outstanding balance into a 3-year term loan/ financing with reduced interest/profit rates to help them better manage their debt.

Since its a pandemic and movement are restricted, customers are advised to use CIMB digital platforms to access the payment assistance programme, the website outlines the payment assistance options that are available where customers are only required to choose their preferred option in order to activate the process. Customers may also opt-in via e-mail or phone. Bank branches are also available for customers to opt-in for the payment assistance programme or discuss other financial assistance. They are however advised to check the official banks website for the latest information on operating hours which have been limited in view of the ongoing MCO.

CIMB assures that approvals are given automatically and no documentation is required upfront. However, hire purchase customers are required to sign a variation agreement with their guarantor, if any, before the payment assistance can be activated. Once customers have opted-in, the Bank will contact them to make the necessary arrangements on the variation agreement. By default, the moratorium will come into effect in the month following the opt-in request. Customers can also contact the Bank if they would like the moratorium to be activated
within the same month.

The payment assistance programme is applicable to all loans/financing approved on or before 30 June 2021 and are not in arrears for more than 90 days as at the submission date. Under this programme, the following groups are
eligible:-

Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group assure that the bank will not charge interest on interest, or profit on profit (i.e. compounding interest/profit), or any penalty interest/late charges during the period of assistance. Customers can also be assured that any financial assistance taken will not impact their CCRIS (“Central Credit Reference Information System”) status.’

As of early-July this year, CIMB has provided financial payment relief assistance to around 223,000 individual and SME customers, amounting to more than RM28 billion, with an approval rate of virtually 100%.

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