KUALA LUMPUR (March 25): Individuals and Small and Medium Enterprises (SMEs) that do not wish or need to avail of the flexibilities of loan and financing repayments can continue with their current repayment structures, Bank Negara Malaysia (BNM) said.
“It is important to note that the interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers will need to honour the deferred repayments in the future.”
Borrowers should, therefore, ensure that they understand and discuss with their banking institutions on the options available to resume their scheduled repayments after the deferment period, the central bank said in a statement today announcing the flexibility on loan and financing repayment in response to the COVID-19 outbreak in the country.
The flexibility involved banking institutions offering a deferment on all loan/financing repayments for a period of 6 months, effective from April 1, 2020.
This offer, however, is only applicable to performing loans, denominated in Malaysian Ringgit, that have not been in arrears for more than 90 days as at April 1, 2020.
“For credit card facilities, banking institutions will offer to convert the outstanding balances into a 3-year term loan with reduced interest rates to help borrowers better manage their debt,” it said.
As of yesterday, Malaysia recorded 1,654 cases COVID-19 of which 183 have recovered, while 16 succumbed to the deadly disease that originated from Wuhan, China.
A total of 18,416 people have been tested so far in Malaysia with 11,970 negative and 4,822 are waiting for their results.
Malaysia has imposed a strict 14 days nationwide Movement Control Order (MCO) which is expected to flatten the infections curve among its populations.
Other measures taken by the government include a restriction of entry for foreigners as well as Malaysians travelling abroad, closure of schools and colleges, a ban on social gatherings and the shut down of shops/business except those dealing with daily essential items.
Source : https://www.edgeprop.my/content/1665613/interest-continue-accrue-individuals-smes-can-opt-out-loan-deferment-flexibility