Just ask your bank for help


RECENTLY, the issue of a moratorium on bank loans has resurfaced, following the lockdown to curb the spread of Covid-19.

There are mounting calls for the moratorium on bank loans to be automatically extended to all borrowers, not just the B40 group, as announced by the government under the Pemerkasa Plus stimulus package early this month.

I understand the rationale in wanting the moratorium extended to the M40 group. Many have also lost their jobs, or had their incomes slashed following the economic troubles brought about by the pandemic.

I should know because I was one of them. When I was let go from my company last November year, I too was at a loss.

My first reaction was how was I going to pay for my housing and car loan? Not to mention to support my young family.

At that time, the previous moratorium had just expired, in September 2020. I picked up the phone and called up my bank asking to restructure my loan.

After a few hiccups and submitting the necessary documents and correspondences, my application was approved.

My point is this: being denied an automatic loan moratorium is not the end of the world. You just need to take the initiative to call the bank and ask to extend the moratorium or restructure the loan.

According to the Association of Banksin Malaysia, more than 90% of such requests are approved.

With banks continuing to earn handsome returns despite the pandemic, I believe many of them have the buffer to provide flexibility to retail borrowers, if only for goodwill purposes. Just pick up the phone and call the banks, guys.

I was lucky that I landed a new job not too long after retrenchment and I continue to service my loans as I did previously.

From a financial standpoint, the faster I settle the debt, the less interest I have to pay.

To me, the question of being denied an automatic loan moratorium is not an issue. Please don’t make it into one. – June 9, 2021.

* K.S. Mak reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.


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