BNM vows targeted repayment assistance for MY businesses and homes
BNM assured its commitment of assistance to business and household in debt. The announcement came on the last day of the automatic moratorium. The moratorium ended yesterday, 30th September. These include a targeted extension of the moratorium, as well as repayment flexibilities to help borrowers based on their specific financial situation. This targeted assistance approach ensures that more resources are available to assist those who are vulnerable. It also enables the banking sector to better support the broader economy through continued lending.
Banking Industry Actively Offers Assistance
The banking industry has been actively reaching out to borrowers in various ways. BNM, together with the banking industry, conducted more than 150 engagement sessions. These include repayment assistance campaigns across the country and direct engagements with various stakeholder groups, including SME associations. To ease the assistance application process, banks have simplified steps, enabled online applications and extended the operating hours of branches (including weekends).
In addition to these efforts, individual banks have directly engaged over 2 million borrowers through calls, emails and SMS to offer repayment assistance. To date, about 500,000 applications for repayment assistance have been received, with an approval rate of 98%. There also continues to be a steady increase in borrowers choosing to resume payment of their monthly instalments.
Applications Still Open
For applications that are still under processing, banks have provided their commitment to inform borrowers of the application results as soon as possible. BNM will closely monitor banks’ practices in this regard. Borrowers facing difficulties with their banks can contact BNMTELELINK at bnmtelelink@bnm.gov.my for further assistance.
Borrowers who can afford to resume monthly repayments should do so, as this would reduce their overall debt and borrowing costs. Although broader economic conditions are improving, some borrowers may still face repayment challenges if their circumstances change in the coming months. If this happens, borrowers can still engage their banks to discuss alternative repayment arrangements. During this period, banks will continue to offer various forms of repayment assistance to borrowers. Applications for repayment assistance at any time before 30 June 2021 will also not appear on a borrower’s CCRIS records. Borrowers may also seek guidance and explore alternative options for help with AKPK.
For more information on the announcement visit BNM here.
