BSN: Borrowers To Provide Covid-19 Mitigation Plans In Future Loan Applications
Author Avatar

(Image: The Edge Markets)

Those applying for loans with banks in the future will need to comply with a new credit assessment approach implemented by banks before any facilities are approved, said the chief business officer of Bank Simpanan Nasional (BSN), Mujibburrahman Abdul Rashid.

According to Mujibburrahman, the new approach will no longer depend solely on historical data for the approvals of loan applications. Instead, borrowers will need to provide future loan repayment or resilience strategies to convince the banks, particularly with regard to how they can mitigate future Covid-19-related setbacks.

“We will look at your action plans. Let’s say if there is a second wave of Covid-19, what is your business and marketing strategies that you can put in place to ensure this time around you are more resilient and are you ready for that?” said Mujibburrahman during a panel session in the Domestic Tourism In The New Normal webinar.

Domestic Tourism In The New Normal webinar

Aside from revealing the implementation of the updated credit assessment approach during the webinar, Mujibburrahman also encouraged local tourism players – whose businesses were majorly impacted by Covid-19 – to tap into financial aid such as loans or financing rescheduling and restructuring (R&R). He said that many industry players believed incorrectly that R&R implies defaulting on their loans.

“R&R is not an element of default but a relief to help business owners to ease their burdens,” said Mujibburrahman. He further added that it will not only ease their burden, but also help to reduce banks’ credit cost, ensuring that the banking industry can continue assisting the tourism industry.

(Source: The Edge Markets)

0 0 votes
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Loans Articles
Post Image
Malaysia Loan Moratorium 2021 Guide: Should You Take The 6-Month Deferment For Your Loans?
Pang Tun Yau
- 9th July 2021
Under the PEMULIH stimulus package, Malaysia will once again see a 6-month moratorium for all loans, applicable to […]
Post Image
5 Things to Know About Car Loans
Desiree Nair
- 23rd January 2019
If you're planning to buy a car; you're going to need a car loan (unless you've got a lot of money in the bank)! We give you a nutshell guide on the 5 things you need to know!
Post Image
Malaysia Bank Moratorium: Why You Should Opt For The 6-Month Deferment For ALL Loans (Updated)
Pang Tun Yau
- 6th May 2020
EDITOR’S NOTE: This article refers to the 2020 loan moratorium, and the information here may be outdated. Please […]
Post Image
Top 5 Signs You Are A Victim of Identity Theft
- 27th October 2017
How will you know if someone is using your details without your consent? It can happen to just about anyone, so learn how to protect yourself against identity theft now!

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image