19th October 2020 - 2 min read
Bank Negara Malaysia (BNM) has revealed that 40% of approved targeted repayment assistance recipients were granted a moratorium extension, while the other 60% of successful applicants received a reduction in instalments.
According to the central bank, the 40% of recipients who were allowed to extend their moratorium on repayments consisted mainly of individuals who had recently been made unemployed. This pool of recipients also included businesses in sectors that were still experiencing significant operating constraints caused by the pandemic.
Meanwhile, the 60% who were granted a reduction in instalments included those in the B40 group. BNM stated that these instalment reductions put individuals and SMEs on a path to start paying down their loans, but at levels which they were comfortable with.
As at 9 October 2020, the number of applications received for post-moratorium aid stood at 640,000, with an approval rate of 98%.
“Among individuals who requested repayment assistance to date, about 50% have a monthly income of RM5,000 or less,” said BNM in a statement. “Meanwhile, 28% are those with a monthly income between RM5,000 to RM10,000.” BNM further highlighted that borrowers in other segments were also being supported, including those who earn variable incomes and those employed in hard-hit sectors like the tourism industry.
With the first BNM-mandated blanket moratorium having ended on 30 September, it was decided that banks would offer targeted repayment assistance to those who still remained financially affected after the six-month moratorium period.
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