ABM: Banks to continue with financial help for affected borrowers

KUALA LUMPUR: The Association of Banks in Malaysia (ABM) has assured borrowers affected by the Movement Control Order and the current full lockdown that financial assistance will continue to be provided.

It said on Tuesday its members, which comprise the conventional commercial banks, will continue to provide financial assistance to customers due to the temporary cessation of their business activities during the lockdown from today until June14.

Currently, the financial assistance from member banks is covered under the Targeted Repayment Assistance (TRA) programme which has been in place since Oct 1,2020.

Under the latest TRA programme, any individual customers who have lost their employment are eligible upon contacting their banks for either:

a. Loan deferment (moratorium) for a period of three months;

OR b. 50% reduction in the monthly instalment payment for a period of six months.

ABM said those whose income have reduced, including household income, are eligible for a commensurate reduction in monthly instalments.

As for B40 borrowers registered under Bantuan Sara Hidup (BSH)/ Bantuan Prihatin Rakyat (BPR), they are eligible to opt for this specific repayment assistance.

Micro-enterprises with loans of not more than RM150,000 may also opt for this specific repayment assistance.

ABM also said the TRA is now expanded to include all SME businesses that are not permitted to operate during the total lockdown, that is those not on the list of permitted sectors as issued by the National Security Council.

It advised affected borrowers (individuals, micro-enterprises and SMEs) seeking this latest TRA to contact their respective banks to indicate which option they want to choose. The banks will automatically approve all selections by borrowers that fulfil the criteria stated above.

As announced by Bank Negara Malaysia, borrowers’ Central Credit Reference Information System (CCRIS) records will not be affected by TRA received in 2021.

Up to March 26,2021, banks have received 1.6 million applications for TRA out of which 95% have been approved.

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