The government will enhance its targeted repayment assistance programme from December 2020, which will include additional repayment options for the B40, M40, and micro-SME groups.
For the B40 who are Bantuan Sara Hidup (BSH) recipients, and micro-SMEs with total approved financing of up to RM150,000, borrowers will be given two new options:
- Option 1: Postponement of repayment for 3 months
- Option 2: 50% reduction in monthly instalment for 6 months
In addition, this enhanced assistance will also cover facilities approved before 1 October 2020 which are not in arrears for more than 90 days. Borrowers who wish to take either option simply need to head to their banks, with no additional documentation required.
Meanwhile, for the M40 borrowers, the application process for repayment assistance will be streamlined. The new process only requires a self-declaration of the borrower’s reduction in income to apply for the assistance.
Unlike other Budget 2021 announcements that will only commence in January 2021 onwards, these enhancements will kick off in December 2020, allowing borrowers to get the assistance they need faster.
Stay up to date with our Budget 2021 coverage here.