KUALA LUMPUR, Sept 30 — The banking industry is offering borrowers the chance to extend their loan moratorium by offering a targeted repayment assistance, via a targeted extension of the moratorium and repayment flexibility options.
In a joint statement, the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) said those who had yet to apply for the extension may still do so but they must act immediately.
“Borrowers and customers who have not applied for repayment assistance before October 1, 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 and customers are unable to resume their loan or financing repayments and require assistance, they may still apply to their bank for repayment assistance.
“Banks urge affected borrowers and customers to act now and don’t delay,” the statement read.
To facilitate the influx of applicants, banks will be open on weekdays as usual and weekends.
Those living in areas under the enhanced movement control order (EMCO) or Targeted EMCO were urged to contact their banks for assistance.
Earlier today, Opposition leader Datuk Seri Anwar Ibrahim admonished Putrajaya for not automatically extending the loan moratorium, warning them that a second wave of Covid-19 infections was imminent.
The MP for Port Dickson cited the worrying rise in Covid-19 cases and clusters in recent weeks could lead to an economic downturn that would affect Malaysians especially the lower income bracket.
He said the banking industry’s claims to have contacted 1.4 million borrowers was pale in comparison to the 8 million borrowers and as such chided the banks for not being transparent with their finances.
In the statement by ABIM and AIBIM, they assured borrowers who had requested the extension but not heard from their bank that they will be getting a response from their respective banks soon.
It also ensured borrowers that acceptance of the targeted extension of the moratorium would not appear in the Central Credit Reference Information System (CCRIS) reports of individuals and SMEs.
“Borrowers and 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 and 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 and customers that those who have applied for assistance with relevant documents but have not heard back from their banks will not be penalised,” the statement continued.
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