According to the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH) financial aid package announced by the Prime Minister, Tan Sri Muhyiddin Yassin on last Tuesday (29 June), all borrowers will be able to apply for a 6-month loan moratorium starting today (7 July).
According to Sinar Harian, Bank Negara Malaysia (BNM) had in a statement said that all borrowers need not to worry because the applications for moratorium or other financing repayment packages are simple. Additionally, supporting documents are not required as approval will be given automatically.
“Apart from the moratorium, banks will also offer reductions in installment payments and other financial packages, including rescheduling and restructuring of financing to suit the specific financial position of borrowers.” BNM said.
Nonetheless, BNM also said borrowers need to understand that by taking loan repayment assistance, the overall cost of borrowing will increase as interest or profit will continue to accrue on the outstanding loan repayment.
BNM also explain that bank officers are required to provide the relevant information to borrowers on the effect of taking loan repayment assistance on the amount of installment payments and the period of financing.
“When borrowers apply for lower installment payments (rather than retaining the original installment payments) after the moratorium, this can cause their loan tenure to be longer.”
“The bank will not charge interest on interest or profit on profit (i.e. interest/compounded profit) or any interest/profit penalty during the moratorium.” he said.
According to BNM, the borrowers’ Central Credit Reference Information System (CCRIS) records will not be affected as a result of receiving any form of loan repayment assistance in 2021.
Borrowers can apply online via a web form or automated email which will be available through the bank’s website for borrowers to submit their personal and financing details.
BNM also advise borrowers to contact their bank by phone and their customer service officers will provide guidance.
“If borrowers are unable to use these digital channels, they can also visit bank branches to submit a moratorium application.”
“Borrowers are advised to obtain information on any changes in operating hours or counter service arrangements from their respective banks due to movement restrictions.” they added.
The banking industry has given its commitment and confidence to help borrowers who are facing financial difficulties due to movement restrictions.
In this regard, BNM will closely monitor the implementation of loan repayment assistance programs by the banking industry.
“If borrowers face any difficulties with their bank, or if installment payments increase unreasonably, borrowers can contact BNMTELELINK via bnm.my/RAsurvey to lodge their complaints.” he said.
Borrowers can also get more information on this loan repayment assistance program by visiting bnm.gov.my/RA and BNM’s social media platform.