The loan repayment flexibility will be opened for application from Aug 7, 2020, Bank Negara Malaysia (BNM) (pictured) announced yesterday.

In its media statement after Prime Minister Tan Sri Muhyiddin Yassin’s announcement yesterday concerning the extension of loan repayment moratorium, BNM noted that it has told banks to deliver a simplified application and documentation process for borrowers.

“In recognition of these exceptional circumstances, the flexibilities provided to borrowers during this period will not appear in the CCRIS reports of borrowers,” said the statement.

To ease concerns of borrowers with loans from multiple banks, BNM added that borrowers could also approach the relevant “one-stop” centre — Agensi Kaunseling dan Pengurusan Kredit (AKPK) or Small Debt Resolution Scheme (SDRS) to work out an appropriate assistance package.

“Banks have also committed to provide repayment flexibility to other individuals and all SME borrowers affected by Covid-19.

“The flexibility offered by each bank will take into account the specific circumstances of borrowers, such as allowing borrowers to pay only the interest portion of the loan over a period of time; lengthening the overall period of the loan to reduce monthly instalments; or providing other forms of flexibility until a borrower is in a more stable position to resume repayments in full,” BNM said.

To recap, Muhyiddin yesterdar announced fresh measures to provide a targeted extension of the moratorium and repayment flexibility to individuals and SMEs who continue to be affected by Covid-19.

Under the measure, the banking industry will provide a targeted moratorium extension and provision of repayment flexibility to individuals who have lost their jobs in 2020 and have yet to find a job will be offered an extension of the loan moratorium for a further three months by their banks.

The measure is also extended to individuals who are still in employment but whose salaries have been affected due to Covid-19. They will be offered a reduction in loan instalment in proportion to their salary reduction, depending on the type of financing. Banks will also offer the flexibility for a period of at least six months and consider extending the flexibility at the end of that period, bearing in mind the salary of the borrower at that time.

Meanwhile, for hire purchase financing, affected borrowers will be offered revised instalment schedules that are consistent with the Hire-Purchase Act 1967.

Source: EdgeProp.my