BANKS will continue to honour the Targeted Repayment Assistance (TRA) programme which has been in place since Oct 1 last year, by ensuring that financial assistance is rendered to deserving borrowers who are impacted by the total lockdown ruling which comes into effect today.
In this regard, the Association of Banks in Malaysia (ABM) said its member banks which comprise conventional commercial banks will continue to make available financial assistance to all affected borrowers in need of such assistance.
Under the latest TRA programme, any individual customers who have lost their employment are eligible, upon contacting their banks for either:
- Loan deferment (moratorium) for a period of three months; or
- 50% reduction in the monthly instalment payment for a period of six months.
In addition, ABM also announced that the TRA is now expanded to include all small medium enterprise (SME) businesses that are not permitted to operate during the total lockdown period, ie those that are not on the list of permitted sectors as issued by National Security Council (NSC).
“All affected borrowers (individuals, microenterprises and SMEs) who wish to avail of this latest TRA only need to contact their respective banks to indicate which option they want to choose,” disclosed ABM.
“The banks will automatically approve all selections by borrowers that fulfil the criteria stated above. For all other affected borrowers, member banks have in place bespoke/customised rescheduling and restructuring schemes to help alleviate their burden.”
Borrowers may refer to their respective banks’ websites for the contact information or visit ABM’s website, https://www.abm.org.my/assistance-for-eligible-borrowers-affected-by-covid-19.
Elsewhere, ABM also highlighted that borrowers’ Central Credit Reference Information System (CCRIS) records will not be affected by TRA received in 2021 as per Bank Negara Malaysia’s (BNM) announcement.
“As such, borrowers do not have to worry about the impact on their future credit profile,” ABM pointed out. “Accordingly, the association urges all borrowers, including SMEs who are affected by the COVID-19 containment measures, to come forward and contact their banks via the its official channels to discuss the options available.”
Moreover, the Agensi Kaunseling dan Pengurusan Kredit (AKPK) stands ready to provide the necessary advise and guidance to both individual borrowers and microenterprises, including options for debt restructuring. – June 1, 2021.
