Kuala Lumpur – The Association of Banks in Malaysia and Association of Islamic Banking and Financial Institutions Malaysia remain cognizant that the rakyat continues to face financial challenges due to the ongoing lockdown under Phase 1 of the National Recovery Plan.
The entities say this is in line with the announcement by Prime Minister Muhyiddin Yassin on the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH package) on 28 June 2021.
“It is reflective of our member banks’ continued commitment to providing comprehensive support to our borrowers and customers, our member banks will be offering a 6-month moratorium on the instalment of all credit facilities (excluding credit cards) for the following borrowers/customers.”
It all on an opt-in basis:
- All individuals (including all B40, M40 and T20 borrowers/customers);
- All microenterprises; and
- All small and medium enterprises (SMEs) that have been affected by the COVID-19 pandemic.
For credit card facilities, banks will offer to convert the outstanding balances into a 3-year term loan/financing with reduced interest/profit rates to help borrowers better manage their debt.
Under the scheme, borrowers/customers are only required to contact their banks to opt in to benefit from the moratorium and approval will be given automatically to all borrowers/customers in the above categories.
