2 months ago
5 
PETALING JAYA: Bank Negara Malaysia (BNM) has reiterated and reassured borrowers that repayment assistance will remain available for borrowers whose incomes have been affected by the pandemic.
Depending on their circumstances, borrowers facing challenges have generally requested for reductions in monthly repayment instalments or an extension of the moratorium.
Borrowers who declined repayment assistance for now would still be able to apply for targeted assistance throughout 2020 and into 2021 if their financial circumstances change in the future, the central bank said in a statement.
“The scale of targeted repayment assistance is unprecedented in Malaysia’s banking history.
Assistance continues to be offered to borrowers across a range of income groups, with special consideration given to households from the B40 category, micro businesses as well as borrowers affected by movement restrictions,” it added.
BNM also highlighted that a targeted approach is in the interest of borrowers, savers and the economy, as it extends relief measures more sustainably, while lending strength to the economic recovery.
To put it simply, for borrowers who are now able, resuming repayments is in their interest as this would reduce the overall cost of borrowings. For those who still require assistance, they have the opportunity to customise their repayment plans based on what they can afford.
“As more borrowers who can afford to repay do so, more assistance can be made available to borrowers that need it.
“Banks have been entrusted by the public to manage their savings. In addition, banks source capital from institutional funds, such as those managing the pensions, retirement funds and investments of Malaysians. It is therefore important to preserve a healthy credit culture where borrowers who can afford to repay do so,” it said.
BNM pointed out that the banking industry has been actively reaching out to borrowers in various ways, including through TV, radio, news outlets, social media and repayment assistance campaigns across the country. Banks have also reached out directly to borrowers assessed to require repayment assistance through calls, emails and SMS.
More than 640,000 applications for repayment assistance have been received, with an approval rate of around 98%. The types of packages offered by banks reflect the financial needs and circumstances of the borrowers.
Of those approved, 40% were granted an extension of the moratorium, while 60% received a reduction in instalments, as at Oct 9.
“Among individuals who requested repayment assistance to date, about 50% have a monthly income of RM5,000 or less. Meanwhile, 28% are those with a monthly income between RM5,000 to RM10,000.
“Borrowers in other segments who need assistance are also being supported, including those who earn variable incomes, and those employed in sectors that have been hardest hit such as the tourism sector,” BNM concluded.
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