Individual and Small and Medium Enterprise (SME) borrowers and businesses can apply directly to their respective banks beginning from Aug 7, 2020 to obtain the flexibilities that were announced today, says Bank Negara Malaysia (BNM).
BNM said that it has communicated to the banks to deliver a simplified application and documentation process for borrowers.
“In recognition of these exceptional circumstances, the flexibilities provided to borrowers during this period will not appear in the CCRIS reports of borrowers,” it said in a statement here today.
The banking industry will provide a targeted moratorium extension and provision of repayment flexibility, with individuals who have lost their jobs in 2020 and have yet to find a job to be offered an extension of the loan moratorium for a further three months by their bank, it said.
Individuals who are still in employment but whose salaries have been affected due to COVID-19 will be offered a reduction in loan instalments in proportion to their salary reduction, depending on the type of financing.
Banks will offer flexibility for a period of at least six months and will also consider extending the flexibility at the end of that period, bearing in mind the salary of the borrower at that time, it said.
For hire purchase financing, affected borrowers will be offered revised instalment schedules that are consistent with the Hire-Purchase Act 1967.
In addition, banks have also committed to providing repayment flexibility to other individuals and all SME borrowers affected by COVID-19. The flexibility offered by each bank will take into account the specific circumstances of borrowers.
To ease concerns of borrowers with loans from multiple banks, they may also approach the relevant “one-stop” centre to work out an appropriate assistance package.
For individuals, Agensi Kaunseling dan Pengurusan Kredit (AKPK) and for SMEs, BNM’s Small Debt Resolution Scheme (SDRS) will monitor the progress of banks in assisting borrowers who may continue to face temporary financial difficulties.
“The Bank will also continue to focus efforts in ensuring that the banking system continues to carry out its intermediation function effectively in support of the economic recovery,” it added.