BANKS will automatically approve the three-month loan moratorium or reduced monthly instalment payments for eligible customers under the latest version of financial assistance for the total lockdown.

The Association of Banks in Malaysia (ABM) said eligible customers are those who have lost employment, suffered reduced income (including household income), B40 borrowers who are registered under Bantuan Sara Hidup (BSH)/Bantuan Prihatin Rakyat (BPR), micro-enterprises with loan facilities of not more than RM150,000, and all small and medium enterprises (SME) that are not permitted to operate during the hard lockdown.

These customers have the option of either a moratorium or loan deferment for three months, or a 50% reduction in the monthly instalment payment for a period of six months. These options are called the targeted repayment assistance (TRA) programme.

“All affected borrowers (individuals, micro-enterprises and SMEs) who wish to avail of this latest TRA, only need 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,” ABM said in a statement.

Its statement follows the government’s announcement Monday night of more assistance for the public as the country enters six weeks of phased movement controls, with the first two weeks until June 14 of total lockdown.

Prime Minister Muhyiddin Yassin said that loan moratoriums will again be granted to those affected. However, this is for three months only, unlike six months last year under the first MCO.

ABM clarified that the assistance available to SMEs that are not permitted to operate during the hard lockdown are those which are not on the list of permitted sectors issued by the National Security Council.

It also said that the process for obtaining either the moratorium or reduced instalment plan has been simplified and can be done online or over the phone.

For other affected borrowers not in the above categories, they can still request banks for help with “customised rescheduling and restructuring” schemes, ABM added.  – June 2, 2021.