KUALA LUMPUR: Malaysian banks will continue to extend repayment assistance, including an extension of existing moratorium to individuals affected by the current movement control order (MCO).

In a joint statement, the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBM) said the banking industry stands ready to assist borrowers in light of the new MCO and will also extend repayment assistance to victims of the recent floods in recent states.

"As at 31 December 2020, over 1.3 million applications for repayment assistance have been received, with an approval rate of 95%.

"In this regard, given this challenging period, the banking industry would like to encourage borrowers/customers with existing repayment assistance arrangements who have difficulties resuming their regular instalment schedules to approach the banks for further repayment assistance," said the associations.

The extension will apply to all Targeted Repayment Assistance schemes announced previously.

In particular, borrowers/customers who lost their jobs in 2020 or 2021 can apply for payment relief for a period of three months any time on or before June 30,2021.

Individuals who are still in employment but have experienced a reduction in income due to the pandemic may apply to lower their instalment amount in line with their income reduction.

Specifically for those in the M40 group who are recipients of the Bantuan Prihatin National, banks have agreed to allow for self-declarations.

Individuals in the B40 category who are registered in the Bantuan Sara Hidup or Bantuan Prihatin Rakyat database may request for either a three-month deferment of instalment, or to reduce their instalments by 50% for six months.

Microenterprises with loans/financing where the original facility amount is up to RM150,000 may request for either a three-month deferment of instalment, or to reduce their instalments by 50% for six months.

The repayment assistance for B40, M40 and microenterprises are applicable for loans/financing approved before Oct 1,2020, and are not in arrears for more than 90 days on the date the request for repayment assistance is submitted to the bank.

"All other borrowers/customers facing difficulties in making loan/financing repayments are also welcome to contact their banks to discuss suitable repayment assistance packages that meet their specific circumstances," said the associations.

Members of the public may inquire on repayment assistance through ABMConnect at https://www.abm.org.my/eabmconnect or AIBIM via email to staff@aibim.com.

Borrowers/customers who are still facing difficulties after consultation with their banks can contact BNMTELELINK at https://telelink.bnm.gov.my/ and for information on targeted repayment assistance, visit https://www.bnm.gov.my/o/covid-19/tra_en.html.

Alternatively, borrowers/customers can also seek guidance and explore other options for assistance with AKPK by calling 03-2616 7766.