KUALA LUMPUR: The ongoing targeted repayment assistance for financial institution borrowers has been enhanced and will be made available to those from the B40 category, whose financial position has been undermined by the Covid-19 pandemic.
The Association of Banks in Malaysia (ABM) said the category of B40 borrowers comprises recipients of Bantuan Sara Hidup (BSH)/Bantuan Prihatin Rakyat (BPR) and microenterprises with loans where the original facility amount is up to RM150,000.
It said under this enhanced targeted repayment assistance, eligible borrowers will be offered two options to choose from, i.e. either a three-month deferment of installment or a six-month reduction in installments by 50 per cent.
"Each eligible borrower can only take up one of the above options under this enhanced targeted repayment assistance for each loan, from Dec 1, 2020 until June 30, 2021," it said in a statement.
ABM added that only loans that approved before Oct 1, 2020 and are not in arrears exceeding 90 days as at date of request by the borrower would be eligible for the enhanced targeted repayment assistance.
It said for married couples who are eligible for BSH/BPR based on household income, both husband and wife would be eligible for this package if they have bank loans.
ABM said those who opted out of the blanket moratorium which was announced in March 2020 are also eligible for the enhanced targeted repayment assistance.
"This enhancement to the targeted payment assistance will be effective from 1 Dec, 2020 up to 30 June 2021.
"The banking industry will provide further updates on details of these enhancements next week," it added.
The ABM, which has 26 members comprising conventional commercial banks in Malaysia, said borrowers may also 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.
It also said all Hire Purchase customers who wish to take up the enhanced targeted repayment assistance will also 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," it said.
ABM said banks are also offering the enhanced targeted repayment assistance to microenterprises with loans where the original facility amount is up to RM150,000.
"Such microenterprises must fall within the definition of a microenterprise, according to the Guidelines on SME definition issued by SME Corporation Malaysia, and would include business entities across all sectors with sales turnover of less than RM300,000 or have less than five full-time employees".
ABM said eligible microenterprises that wish to avail themselves of the enhanced targeted repayment assistance must contact their banks via the banks' official channels to request and confirm the repayment assistance required.
In addition, for M40 borrowers who are registered with the Bantuan Prihatin Nasional (BPN) database and whose household incomes have been reduced due to the pandemic, it said banks will accept the borrowers' self-declaration as evidence of reduced household income to ease the application process for targeted repayment assistance.
"The targeted repayment assistance announced previously for those who have lost their jobs in 2020 and have yet to find another job, or whose income has been affected due to the Covid-19 pandemic will still be available".
It said all borrowers, regardless of whether they are recipients of BSH/BPR, categorised as M40 who are registered in the BPN database or not, who wish to discuss their financial repayment options with their banks and obtain advice on the targeted repayment assistance options available to them are welcome to contact their banks at any time, via their banks' various official channels such as through the banks' websites, branches or customer service hotlines.
ABM said borrowers in areas which are under Conditional Movement Control Order (CMCO) or Enhanced Movement Control Order (EMCO) are encouraged to contact their banks via email, telephone or the banks' online portals.
"We would like to remind borrowers to be wary of scammers and only apply for this enhanced targeted repayment assistance through official bank channels. Borrowers are also advised not to deal with any third party claiming to be agents/representatives of the banks on matters relating to repayment assistance," it said.
The steps taken by ABM comes on the heels of the 2021 Budget tabling by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and the announcement by Bank Negara Malaysia of repayment assistance for borrowers affected by the Covid-19 pandemic.