Following the end of the six-month blanket moratorium, Bank Negara Malaysia recognises the continued challenges faced by some borrowers in the current environment.
Banks will continue to support those borrowers that may face difficulties in fulfilling their financial obligations, through the Targeted Repayment Assistance (TRA) program.
The banking industry has agreed to provide additional targeted repayment assistance for individuals and SME borrowers. These enhancements are an addition to those previously announced for those who have lost their jobs, and for individuals and SMEs whose incomes have been affected by the pandemic. Borrowers can also continue to approach their banks for tailored repayment assistance based on their specific financial circumstances as all banks continue to stand ready to provide support to borrowers that need assistance.
Additional repayment assistance will be rolled out to borrowers in the following categories:
Borrowers in these categories can request to either:
The assistance will be extended for facilities approved before 1 October 2020 which are not in arrears for more than 90 days at the time a borrower requests for repayment assistance. B40 and microenterprise borrowers who had previously received other forms of targeted repayment assistance, and who wish to request for further assistance under the additional measures announced today can still do so by contacting their banks.
To request for this assistance, eligible borrowers will only need to confirm their repayment option with their bank. Additional documentation from borrowers is not required by banks to obtain repayment assistance.
However, for hire purchase loans and fixed rate Islamic financing, borrowers would need to sign new agreements in accordance with the Hire Purchase Act 1967 and Shariah requirements.
These additional repayment assistance will be available to eligible borrowers between 23 November 2020 and 30 June 2021. Borrowers may indicate the repayment assistance from 23 November 2020 through banks’ customer service hotlines, online banking, or by visiting bank branches. The banking industry will provide further details on these enhancements next week.
The repayment enhancement will be available for instalments due in December 2020 onwards, and will take effect at the next instalment following a borrower’s request and confirmation.
For sharing: Summary infographics
BNM has also been working with the banking industry to fine tune the delivery of targeted repayment assistance.
1. Simpler documentation for borrowers who are BPN M40 recipients
For M40 borrowers who are registered in the Bantuan Prihatin Nasional database, and whose household incomes have been reduced due to the pandemic, banks will accept requests from borrowers for a reduction in monthly instalments. This will be based on borrowers’ self-declaration of reduced income and/or their household to further expedite immediate relief. Banks will continue to engage with such borrowers subsequently to review their financial circumstances.
2. Dedicated Agensi Kaunseling dan Pengurusan Kredit (AKPK) Micro Enterprises Help Desk
In addition to contacting banks, an additional avenue will be made available for microenterprises to request for repayment assistance through AKPK’s dedicated micro business helpdesk starting 9 November 2020 at www.akpk.org.my/microhelpdesk. The virtual helpdesk provides free financial advice and facilitates applications for repayment assistance.
3. Assessment of a borrower’s overall household income
For individual borrowers requesting to reduce their instalments, practices across banks have been streamlined to take into account not only the borrower’s own income, but also how the income of his or her spouse has been affected by the pandemic. This is already practiced by most banks and has now been adopted by all banks to allow for more holistic assessments of a borrower’s financial situation.
These new enhancements build on existing efforts adopted by banks to better accommodate the exceptional challenges faced by borrowers.
BNM would like to reassure borrowers facing financial difficulties due to the pandemic that repayment assistance remains available to individuals across all income groups and SMEs of all sizes. Assistance that is tailored to borrowers’ specific circumstances will be more helpful to support their current and future financial needs.
Despite ongoing measures to contain COVID-19, the resumption of economic activities has enabled many borrowers to continue repaying down their debt.
For borrowers who can afford to do so, this is in their best interests as reducing or deferring instalments will lead to higher costs and larger overall debt that they eventually have to bear in the future. Borrowers are advised to only apply for loan instalment deferment if they really need immediate cashflow relief.
Borrowers are strongly encouraged to re-engage and discuss with their banks at any time in the future to review the payment terms when their financial position improves.
Borrowers who still face financial challenges will continue to be supported through targeted repayment assistance. When engaging with their banks, borrowers are advised to request banks to clearly explain the repayment terms and cost implications of taking the repayment assistance to allow them to make informed decisions based on their own financial management needs and goals.
BNM urges borrowers who are facing difficulties in meeting their loan repayments to contact their banks, AKPK or BNMTELELINK to understand the options available to manage their debt. Targeted repayment assistance will continue to be available for affected borrowers throughout 2020 and 2021.
Borrowers facing difficulties with their banks can lodge a complaint with BNMTELELINK at bnm.my/RAsurvey.
All banks will offer the following to individual borrowers:
In addition, banks offer a range of additional packages to individuals. These packages may differ from bank-to-bank, and are designed to take into account the financial needs and circumstances of borrowers. This includes:
Banks offer a range of packages to SMEs. The packages offered may differ from bank-to-bank, and are designed to take into account the financial needs and circumstances of borrowers. This includes:
Applications for repayment assistance at any time before 30 June 2021 will also not appear on a borrower’s CCRIS records.
There are no processing fees/charges associated with applications for repayment assistance for individual and SME borrowers.
To obtain these flexibilities, borrowers need to apply directly to their respective banks. (Links to banks provided below)
The application process and documentation requirements will vary from bank-to-bank. However, applying is expected to be easy and convenient, with simplified paperwork. In most cases, borrowers should be able to apply and complete the application on-line or over the phone.
Banks have committed to process applications quickly. If you are an individual borrower, your bank should get back to you with a decision within 5 calendar days, and if you are an SME borrower, your bank should get back to you within 14 calendar days.
Maximum processing time for individuals
Maximum processing time for SMEs
In line with their commitment to support affected borrowers, the banks have adopted a simplified application and documentation process.
To avoid any processing delays, the banks will need relevant and complete supporting documentations to be submitted together with your application. If you are unsure about the application process or documentation requirements, contact your bank to seek for advice on how to put in a complete application.
Borrowers who have not received a response from their banks within the timeframes or face difficulties with their banks may contact BNM TELELINK. bnm.my/RAsurvey
Borrowers who can afford to continue their loan repayments should do so. Resuming repayments would be in their interest as this would reduce the overall cost of borrowings.
Meanwhile, borrowers who require assistance at this time have the opportunity to customise their repayment plans based on what they can afford. If their circumstances are further challenged in the future, they would have more recent repayment records to facilitate further assistance by banks.
If you need guidance in applying for repayment assistance or wish to explore alternative options for your finances, you may contact AKPK.
Below is the list of banking institutions websites with details on their repayment assistance program, provided as is, for informational purposes only.
|Banking Institution||Webpage link|
Affin Bank Berhad
Affin Islamic Bank Berhad
|Al Rajhi Banking & Investment Corporation (Malaysia) Berhad|
Alliance Bank Malaysia Berhad
Alliance Islamic Bank Berhad
AmBank (M) Berhad
AmBank Islamic Berhad
|BNP Paribas Malaysia Berhad|
|Bank Islam Malaysia Berhad|
|Bank Muamalat Malaysia Berhad|
CIMB Bank Berhad
CIMB Islamic Bank Berhad
HSBC Bank Malaysia Berhad
HSBC Amanah Malaysia Berhad
Hong Leong Bank Berhad
Hong Leong Islamic Bank Berhad
|Kuwait Finance House (Malaysia) Berhad|
|MUFG Bank (Malaysia) Berhad|
Malayan Banking Berhad
Maybank Islamic Berhad
|MBSB Bank Berhad|
OCBC Bank (Malaysia) Berhad
OCBC Al-Amin Bank Berhad
Public Bank Berhad
Public Islamic Bank Berhad
RHB Bank Berhad
RHB Islamic Bank Berhad
Standard Chartered Bank Malaysia Berhad
Standard Chartered Saadiq Berhad
|Sumitomo Mitsui Banking Corporation Malaysia Berhad|
|United Overseas Bank (Malaysia) Bhd.|
|Development Finance Institution||Webpage link|
|Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat)|
|Bank Pembangunan Malaysia Berhad|
|Bank Pertanian Malaysia Berhad (Agrobank)|
|Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank)|
|Bank Simpanan Nasional|
|Export-Import Bank of Malaysia Berhad (EXIM Bank)|