Enhanced targeted repayment assistance now available to B40 borrowers, microenterprises

PETALING JAYA: The enhancements to the targeted repayment assistance will be available to B40 borrowers who are recipients of the Bantuan Sara Hidup(BSH)/Bantuan Prihatin Rakyat (BPR) and microenterprises with loans where the original facility amount is up to RM150,000.

The Association of Banks (ABM) said under the enhanced targeted repayment assistance, eligible borrowers will be offered two options to choose from – a three-month deferment of instalment or a six-month reduction in instalments by 50%.

Each eligible borrower can only take up one option under the enhanced targeted repayment assistance for each loan, from Dec 1, 2020 until June 30, 2021.

Only loans that were approved before Oct 1 and are not in arrears exceeding 90 days as at date of request by the borrower would be eligible.

For married couples who are eligible for BSH/BPR based on household income, both husband and wife would be eligible for the package if they have bank loans.

Those who opted out of the blanket moratorium that was announced in March are also eligible.

The enhancement to the targeted payment assistance will be effective from Dec 1, 2020 up to June 30, 2021.

“The banking industry will provide further updates on details of these enhancements next week.

“Borrowers may submit their requests and confirmation of the repayment assistance required to their banks via the channels provided by the banks, from Nov 23, 2020 until June 30, 2021,” ABM said in a statement.

It added that all hire purchase customers who wish to take up the repayment assistance will be required to indicate their acceptance of the revised terms and formally confirm the same with their respective banks.

This involves the signing of fresh documentation in relation to the hire purchase facility to ensure that the rights of all parties continue to be preserved and protected as required under the provisions of the Hire Purchase Act 1967, which governs the financing granted.

Similar process and documentation requirements would apply to customers with fixed rate Islamic financing facilities.

Microenterprises original loan facilities of up to RM150,000 must fall within the definition of a microenterprise, according to the guidelines on the SME Definition issued by SME Corporation Malaysia, including business entities across all sectors with sales turnover of less than RM300,000 or have less than five full-time employees.

They must contact their banks via the banks’ official channels to request and confirm the repayment assistance required.

For M40 borrowers who are registered in the Bantuan Prihatin Nasional (BPN) database and whose household incomes have been reduced due to the pandemic, banks will accept their self-declaration as evidence of reduced household incomes to ease the application.

ABM also reminded borrowers to be wary of scammers and only apply for the enhanced targeted repayment assistance through official bank channels and not to deal with any third parties claiming to be agents or representatives of the banks on matters relating to repayment assistance.