Beginning on the 7th August 2020, borrowers need to apply directly with their respective banks in order to obtain loan repayment flexibility.
With the blanket loan moratorium set to end on 30th September, banks are ready to assist affected borrowers – who have suffered from the COVID-19 situation with repayment plans.
What happens after the loan repayment period starts?
By delivering a simplified application and documentation process for borrowers, the flexibility provided to borrowers during this period will not appear in the borrowers CCRIS (Central Credit Reference Credit System) reports.
Prime Minister Tan Sri Muhyiddin Yassin announced measures to provide a targeted extension of the moratorium and repayment flexibility to individuals and small and medium enterprises (SMEs) who continue to be affected by Covid-19.
3-month loan moratorium extension for the jobless
Individuals who have lost their jobs in 2020 and have yet to find new ones will be offered an extension of the loan moratorium for a further three months by their banks.
Meanwhile, individuals who are still employed but whose salaries have been affected due to COVID-19 will be offered a reduction in loan instalments in proportion to their salary reductions, for a period of at least six months and depending on the types of financing.
Banks will also consider extending the flexibility at the end of the extended loan period, bearing in mind the salaries of the borrowers at that time.
It added that for hire purchase financing, affected borrowers will be offered revised instalment schedules that are consistent with the Hire-Purchase Act 1967.
What else are banks doing for the affected borrowers?
In addition, banks have also committed to providing repayment flexibility to other individuals and all SME borrowers affected by COVID-19.
To ease the loan repayment application process for borrowers with loans from multiple banks, Bank Negara Malaysia said affected parties may approach the relevant “one-stop” centres to work out appropriate assistance packages.
- For individuals – Credit Management and Counselling Agency
- For SMEs – Small Debt Resolution Scheme
Throughout the year, Bank Negara Malaysia will monitor the progress of banks in assisting borrowers that may continue to face temporary financial difficulties.
Remember, it is times like these where need we keep our heads above the water for the sake of ourselves, our loved ones and our community.
Keep calm and carry on the Malaysian spirit as high as you can! #StayHopefulWithIQI