Joint press release by ABM and AIBIM - Repayment Assistance: Banks Continue Commitment To Assist Affected Borrowers/Customers
Kuala Lumpur, 30 September 2020 – With the blanket moratorium ending on 30 September 2020, the banking industry has entered the next phase to support borrowers/customers affected by COVID-19. The banking industry is offering targeted repayment assistance to affected individuals as well as small and medium enterprises (SMEs), via a targeted extension of the moratorium and repayment flexibility options.
In line with its commitment to support affected borrowers/customers, the banking industry has adopted a simplified application and documentation process for targeted repayment assistance. Banks have also ensured that acceptance of the targeted extension of the moratorium and repayment flexibilities during this period will not appear in the CCRIS reports of individuals and SMEs. The banking industry has already processed the vast majority of applications received, with 98% approval rate for individuals and SMEs as of mid-September 2020.
Borrowers/customers who have submitted applications for targeted repayment assistance to-date but have yet to receive a response from their banks, can expect to hear from their respective banks very soon. Alternatively, borrowers/customers may also contact their bank to check on application status if there is no update from the bank. The banks would like to reassure borrowers/customers that those who have applied for assistance with relevant documents but have not heard back from their banks will not be penalised. The banks are endeavouring to process all applications for targeted repayment assistance as swiftly as possible.
Borrowers/customers who have not applied for repayment assistance before 1 October 2020 would need to resume repayment of their monthly instalments based on the instalment amount as advised by their banks, beginning October 2020. If however, affected borrowers/customers are unable to resume their loan/financing repayments and require assistance, they may still apply to their bank for repayment assistance. Banks urge affected borrowers/customers to act now and don’t delay.
To further assist borrowers/customers in coming forward to apply for repayment assistance, selected bank branches throughout the country will continue to extend operating hours on weekdays and open on weekends. Affected borrowers/customers in areas that are under Enhanced Movement Control Order (EMCO) or Targeted EMCO (TEMCO) and face constraints in submitting applications may contact their bank for assistance.
The banking industry is cognisant that while the economy is recovering, many borrowers/customers may still be finding their footing and reorienting themselves amid new realities and uncertainties. If repayment obligations become a challenge in the coming months, borrowers/customers can be assured that the window to discuss alternative repayment arrangements will remain open. The banking industry has supported borrowers/customers through the challenging economic environment since the start of the pandemic, and will continue to do so as Malaysia navigates its way out of the current crisis.