Banks committed to assisting borrowers before moratorium ends

  • Business
  • Wednesday, 23 Sep 2020

KUALA LUMPUR (Bernama) -- Malaysian banks are committed to assisting borrowers in providing further assistance before the automatic blanket moratorium ends on Sept 30.

CIMB Group Holdings Bhd chief executive officer Datuk Abdul Rahman Ahmad said banks had identified and contacted about two million borrowers impacted by the COVID-19 pandemic and Movement Control Order, and were working hard to contact them before the end of the moratorium.

"As of Sept 11, the banks had spoken to 1.4 million borrowers out of the two million borrowers contacted. Over 380,000 of them have confirmed that they require loan repayment assistance while the remaining are considering the financing options available to them.

"About 98 per cent of completed loan repayment assistance applications have been approved by banks,” he told reporters at a media roundtable with bankers at Sasana Kijang here today.

Abdul Rahman, who chaired the session, added that of the 380,000 who required assistance, 26,000 were small and medium enterprises (SMEs) and retail borrowers formed the balance.

The application process for an individual would take one to five days, and it was expected to take three days to two weeks after the completed applications were received by banks for SMEs, he said.

"All the banks are committed to helping borrowers pre and post-moratorium. We urge borrowers who need help to come forward and reach out to their banks for further assistance,” he added.

Abdul Rahman urged borrowers not to wait until the last minute to approach the banks as repayments not made after September would be considered overdue installments.

"It will be reflected in their Central Credit Reference Information System (CCRIS) report and subjected to banks’ debt collection procedures.

"However, the banks would still assist borrowers after September to avoid overdue instalments and its due process from happening,” he said, adding that the banking industry would be providing a targeted moratorium extension from October.

Abdul Rahman said the banks were projecting about 600,000 uncontactable borrowers, out of the two million borrowers identified as vulnerable, to come forward later.

In anticipation of the surge of borrowers coming forward at the last minute, the banks had made various channels available to ease them in seeking assistance via various online platforms and extended operation hours, he said.

However, Abdul Rahman said about 70-80 per cent of the contacted borrowers had stated they were able to continue repayments after September.

"We believe this reflects the strength of our economy as well as the confidence of the borrowers that they could cope with their loans.

"The strength of the economy was also supported by data of the increasing demand for car sales in June and July, which registered above 50,000 units in total industry volume,” he added.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Loan moratorium , SMEs , Abdul Rahman Ahmad , CIMB


Next In Business News

U.S. yields rise, Asian shares and European futures tumble as Powell warns on inflation
Bank Negara, Bank Indonesia launch cross-border QR payment linkage
Westport FY21 net profit rises to RM808.22mil
LCTitan posts net profit of RM186.84mil in 4Q
AirAsia 4Q consolidated AOC records strong 80% load factor
MNHB signs underwriting deal with M&A Securities for IPO
Healthcare, telco stocks drag Bursa lower at midday
Bursa, Maybank, Digi, Top Glove included in Bloomberg’s 2022 Gender-Equality Index
Gagasan Nadi commences 30-year chilled water supply for Datum Jelatek Mall
Ringgit opens lower against US dollar

Others Also Read