BNM Announces Automatic Moratorium On All Bank Loans For Individuals And SMEs; Deferment Of 6 Months
Author Avatar

bank negara malaysia

Bank Negara Malaysia (BNM) has announced a number of updates to provide some relief to those facing financial constraints due to the COVID-19 pandemic. Chief among these is the automatic deferment of individual and SME loans for a period of 6 months.

According to the country’s central bank, this move is designed to ease the cash flow of individuals and SMEs that are most likely to be affected by the ongoing pandemic. All conventional and Islamic banking institutions licensed by BNM will offer a deferment of all loans to individual customers as well as SME customers for a period of 6 months, with effect from 1 April 2020. The only two stipulations to this are that they are denominated in Malaysian Ringgit, and that the loans have not been in arrears for more than 90 days as at 1 April 2020.

In an FAQ released alongside the press release today, BNM stated that this deferment will be automatically applied to all loans that qualify based on the two stipulations above. This means that customers do not need to apply for the deferment, a marked difference to how it is currently where customers are asked to apply for the deferment – and the decision to approve to be at the discretion of the bank.

bank financial assistance covid 19

This automatic deferment will kick in from 1 April 2020, and customers who wish to defer their loans for a period of six months do not need to do anything. For those who wish to opt out of deferring their loans, they simply need to continue making timely repayment of their current loans or financing.

However, note that interest on the loan will still accrue during the period of deferment. For Islamic financing, profit will continue to accrue, but in line with Shariah principles, such profit will not be compounded.

Finally, Bank Negara also stressed that this automatic deferment is only for a period of six months. Customers who require a longer deferment period are advised to contact their respective banks. In addition, the moratorium only applies to individuals and SMEs – corporate borrowers or customers may request for a deferment from their respective banks.

5 4 votes
Article Rating


Comments (2)

Notify of

Inline Feedbacks
View all comments
3 years ago

Do not need to do anything? If my loan auto debit, then how?

Pang Tun Yau
3 years ago
Reply to  Heyjoe

Check with your respective banks’ FAQ. There may or may not be additional steps needed, but it varies by bank.

Top Business 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
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
3 Reasons Why SME Business Owners Should Consider RHB SME Online Financing
Chee Jo-Ey
- 3rd June 2021
Findings from The Mastercard Impact Study for SMEs revealed that 2021 could be the year of recovery for […]
Post Image
Public Bank Extended Moratorium: Flexible Arrangements To Reduce Loan Instalments Until End-2021
Jacie Tan
- 7th August 2020
Public Bank has released the details of its Covid-19 assistance for those who will still be in financial […]

Related articles

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