Loan Repayment Assistant For Affected Borrowers During MCO 3.0
In their continual support of the economic recovery process, the government launched the Strategic Programme to Empower the People and Economy or PEMERKASA worth RM20 billion, along with a new fiscal injection amounting to RM11 billion on Wednesday 17 March 2021. PEMERKASA would focus on 20 strategic initiatives to boost economic growth, support business, and continue targeted assistance to the people and sectors that are still affected. With the inclusion of PEMERKASA (RM20 billion), the total value of the Loan Repayment Assistant.
On 31 May 2021, Prime Minister Tan Sri Muhyiddin Yassin said in a special address that a number of initiatives would be implemented under the Supplementary Strategic Programme to Empower the People and Economy (PEMERKASA+).The RM40 billion aid package is anchored under three main objectives which are:
(i) to increase public healthcare capacity
(ii) continue the welfare agenda for the people, and
(iii) support business continuity
He went on to announce that the banks initiative of providing the option of 3 month Loan Repayment Assistant or a 50% reduction in loan repayment for six months to all B40 borrowers registered under the BSH/BPR, those who lost their jobs as well as SMEs who are not allowed to operate during the movement control order is worth RM30 billion and benefits approximately 5 million borrowers.
What is the moratorium extension?
If your income is still not back to normal and you are not ready to start repaying your loans, there are several options available to help you manage your debts. The prime minister had announced in July last year that there will be targeted Loan Repayment Assistant for those financially affected by Covid-19. The new round of MCO in 2021 has also provided moratorium extensions for those affected under the Pemerkasa Plus aid package.
It’s important to note that this extension is not automatic like the previous moratorium. Borrowers who want to extend their Loan Repayment Assistant amounts must apply directly to the bank.
If you can afford the monthly repayment now, it’s better to start paying again as the longer you delay means the loan period would be extended even more in future. As for home loans, the longer you delay paying down the loan while adding on the unpaid monthly interest charges will mean paying more in borrowing cost in future.
Repayment Assistance Packages For Individuals
| Category | Repayment Assistance |
|---|---|
| 1. Loss of employment (B40, M40, and T20) | i) Moratorium for three months; OR ii) Reduction of monthly instalments by 50% for 6 months. |
| 2. B40 recipients of the Bantuan Sara Hidup (BSH) or Bantuan Prihatin Rakyat (BPR) | |
| 3. Reduction of income (all borrowers) – including salary, allowances, commissions, overtime, household income, and those on no-pay or partial-pay leave. | Reduction of monthly instalments according to reduced income |
Loan Repayment Assistance Packages For Business
| Category | Repayment Assistance |
|---|---|
| 1. Microenterprises (as defined by SME Corp, for facilities with approved amounts of up to RM150,000) | i) Moratorium for three months; OR ii) Reduction of monthly instalments by 50% for 6 months. |
| 2. SMEs including microenterprises that are not allowed to operate during the Movement Control Order (locked-down sectors)* |
List of Banks' Loan Repayment Assistance
| Banking Institutions |
|---|
| Affin Bank Berhad Affin Islamic Bank Berhad |
| Al Rajhi Banking & Investment Corporation (Malaysia) Berhad |
| Alliance Bank Malaysia Berhad Alliance Islamic Bank Berhad |
| AmBank (M) Berhad AmBank Islamic Berhad |
| BNP Paribas Malaysia Berhad |
| Bank Islam Malaysia Berhad |
| Bank Muamalat Malaysia Berhad |
| CIMB Bank Berhad CIMB Islamic Bank Berhad |
| Citibank Berhad |
| HSBC Bank Malaysia Berhad HSBC Amanah Malaysia Berhad |
| Hong Leong Bank Berhad Hong Leong Islamic Bank Berhad |
| Kuwait Finance House (Malaysia) Berhad |
| MUFG Bank (Malaysia) Berhad |
| Malayan Banking Berhad Maybank Islamic Berhad |
| MBSB Bank Berhad |
| OCBC Bank (Malaysia) Berhad OCBC Al-Amin Bank Berhad |
| Public Bank Berhad Public Islamic Bank Berhad |
| RHB Bank Berhad RHB Islamic Bank Berhad |
| Standard Chartered Bank Malaysia Berhad Standard Chartered Saadiq Berhad |
| Sumitomo Mitsui Banking Corporation Malaysia Berhad |
| United Overseas Bank (Malaysia) Bhd. |
| Development Finance Institutions |
|---|
| Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) |
| Bank Pembangunan Malaysia Berhad |
| Bank Pertanian Malaysia Berhad (Agrobank) |
| Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) |
| Bank Simpanan Nasional |
| Export-Import Bank of Malaysia Berhad (EXIM Bank) |
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