The government’s latest announcement on the extended moratorium and targeted bank assistance is definitely good news for borrowers who are still affected by the economic effects of Covid-19. However, one concern that some may have is with the long-term creditworthiness of the borrower if they choose to opt for the extended moratorium assistance.
Shortly after Prime Minister Tan Sri Muhyiddin Yassin’s announcement today, Bank Negara Malaysia (BNM) released its own statement that includes additional information for borrowers regarding the new programme.
One specific area relates to any potential impacts to a borrowers credit health if they opt in for the moratorium extension. According to BNM,
In recognition of these exceptional circumstances, the flexibilities provided to borrowers during this period will not appear in the CCRIS reports of borrowers.
Just like the current automatic moratorium, borrowers taking up this extended moratorium or targeted bank assistance due to Covid-19 will not see it reflected on their CCRIS reports. In other words, taking up this moratorium or any Covid-19 related R&R programme offered by the banks will not negatively impact a borrower’s credit health, nor will it adversely affect their credit scores.
However, just like the previous moratorium, BNM encourages borrowers who can afford to resume repayments to do so and not apply for an extension, as it will reduce their overall debt and borrowing cost.