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Six-month moratorium application opens from July 7: Bank Negara

July 07, 2021
Source:  2021 © New Straits Times

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By Ayisy Yusof - July 6, 2021 @ 5:13pm

KUALA LUMPUR: Individual and microenterprise borrowers, as well as small and medium businesses (SME), will be able to apply for the six-month moratorium beginning July 7, 2021, according to Bank Negara Malaysia.

In a statement issued today, the central bank stated that approval for a moratorium will be granted automatically and any other repayment arrangements will be made simple, with no requirement for borrowers to submit supporting documentation.

This is in line with the announcement of the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH) by the government recently.

Bank Negara said banks will also offer a reduction in instalments and other packages, including rescheduling and restructuring financing to suit the specific financial circumstances of borrowers.

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Borrowers can opt-in online through a web form or an auto-generated email that will be available on banks' websites to provide their personal and financing details.

Alternatively, borrowers may also phone their banks and guidance will be provided by the customer service officer.

If borrowers are unable to use these digital channels, they may also visit their bank branches to submit their request for the moratorium.

However, Bank Negara said borrowers are advised to check with respective banks on any changes in operating hours or arrangements for over-the-counter services due to movement restrictions.

The repayment assistance is applicable for financing approved before July 1, 2021.

Borrowers who have missed more than 90 days of payments or who are subject to bankruptcy or winding-up proceedings at the time the request for repayment assistance is submitted will not be eligible for assistance.

Borrowers who are already enrolled in a repayment assistance programme and repaying their debts in accordance with the program's terms will be able to participate in this moratorium.

Individual and SME borrowers who have financing with more than 90 days of missed payments are advised to contact Agensi Kaunseling dan Pengurusan Kredit (AKPK) to obtain suitable repayment assistance and free financial advice.

Bank Negara said SMEs including microenterprises can also request for assistance through AKPK's dedicated SME Help Desk.

The virtual help desk provides free financial advice and facilitates applications for repayment assistance.

Borrowers are advised that opting for repayment assistance will increase the overall cost of borrowing, as interest/profit will continue to accrue on deferred payments.

Bank Negara said banks are required to provide borrowers with information on how instalment amounts and the financing tenure will be impacted.

Where a borrower requests to maintain lower instalments (instead of original instalments) after the moratorium, this would result in the loan tenure being extended for a longer period.

It said banks will not charge interest on interest, or profit on profit (i.e. compounding interest/profit), or any penalty interest/profit during the period of assistance.

Bank Negara said borrowers' Central Credit Reference Information System (CCRIS) records will not be affected by any form of repayment assistance received in 2021.

The banking industry has provided its commitment and assurance to assist borrowers facing financial difficulties due to the lockdown.

In this regard, Bank Negara said it will closely monitor the implementation of the repayment assistance programme by the banking industry.

If borrowers face any difficulties with their banks, or if instalments increase unreasonably, they may contact BNMTELELINK at bnm.my/RAsurvey to put in their complaints.

Borrowers may also get more information on the enhanced repayment assistance programme by visiting bnm.gov.my/RA and BNM's social media platforms.