Banks offer 6-month moratorium on loan repayments
CORONAVIRUS | Malaysian banks are offering financial relief to their customers who are affected by the Covid-19 outbreak.
Maybank
said it has introduced a moratorium of up to six months for its
customers and this could also include restructuring and rescheduling of
financing facilities.
Other
banking and financial institutions which have reportedly offered a
moratorium on loan repayments include Bank Rakyat, SME Bank, Tekun, Bank
Simpanan Nasional, Public Bank and Public Islamic Bank, RHB Bank and
RHB Islamic Bank, Agrobank, Hong Leong Bank and Hong Leong Islamic Bank,
Bank Islam and Bank Muamalat.
Bernama reported
MBSB Bank president and chief executive officer Ahmad Zaini as saying
that the bank is also offering financial relief to its retail, corporate
and small and medium enterprise (SME) clients affected by Covid-19.
Affected
retail customers will be offered a six-month moratorium on installment
payment for financing and they may also opt to restructure or reschedule
their financing.
Corporate and SME clients, who are
directly or indirectly affected by the pandemic, especially those in
industries such as hospitality and tourism, may apply for financing
restructuring and rescheduling.
Meanwhile, both Affin Bank and Affin Islamic Bank will also be offering financial relief assistance for their customers.
“We
are committed to continuing our support for our valued customers as the
preferred banking partner by relieving them from further distress
during these trying times,” said Affin Bank group chief executive
officer Kamarul Ariffin Mohd Jamil.
For its retail customers, the bank will provide a moratorium of up to six months, restructuring and rescheduling of financing facilities for customers who subscribe to mortgage, hire purchase, credit cards, education financing, Amanah Saham Nasional financing and personal financing.
For corporate banking customers, the bank will
provide temporary relief to affected eligible customers as stipulated in
Bank Negara Malaysia’s Credit Risk Guideline and the request will be
subjected to internal approvals and credit due diligence.
The
relief may involve rescheduling and restructuring exercise such as
granting of a moratorium on the loan/financing and repayments up to six
months, subject to terms and conditions.
Agrobank has also
announced several measures along with initiatives undertaken by Bank
Negara to provide relief to small and medium enterprises (SMEs) affected
by the pandemic.
It said the measures are an immediate moratorium
of up to six months for the monthly instalment payments of financing
for its existing customers and restructuring of their financing to help
with their cash flow situation.
"As the outbreak escalates,
Agrobank will continue to be very active in providing financial relief
measures in assisting SMEs to weather the storm of the Covid-19
pandemic,” covering president and chief executive officer Khadijah
Iskandar said in a statement today.
Agrobank, through BNM’s
Stimulus Package 2020, is also providing a RM2 billion Special Relief
Facility (SRF) which will be deployed in the form of working capital to
assist SMEs that are adversely impacted by Covid-19.
Khadijah said
this facility is vital for SMEs in the agriculture and agrofood sectors
to sustain their business operations and alleviate short-term cash flow
problems.
“Through this programme, Agrobank will provide a
prompt, collateral-free financing facility of up to RM1 million per SME
with a competitive financing rate capped at 3.75 per cent per annum,”
she said.
She said eligible SMEs can obtain the financing facility
with Agrobank for a tenure of up to 5.5 years, including a six-month
grace period.
Another initiative taken under BNM’s Stimulus
Package 2020 was the introduction of a RM1 billion Agrofood Facility and
a RM300 million SME Automation and Digitalisation Facility.
in my opinion, moratorium is good to help people who affected during pandemic especially for B40. But, when a bank offers a moratorium, this means that the bank is essentially prepared not to accept any profit for the deferral of repayment offered to borrowers or customers of financing products for a certain period. This also has a direct impact on depositors because the depositors' money was used for the bank to provide the financial loan. So, banking institutions need to take into account the impact on depositors and bank operations within 6 months of the moratorium offered.
ReplyDeleteI completely identify with and endorse the Malaysian banks' moratorium because the aim is to provide some relief to individuals and companies who are experiencing temporary financial hardship as a result of the COVID-19 pandemic. I hope that this will assist individuals and companies dealing with financial difficulties in overcoming obstacles during this period. Then, after the deflation, loan repayment resumes.
ReplyDeleteMohamad imran bin abdul rahman
1190860
KME 3
Muhammad hazimi syaqir bin mohd hashim
ReplyDelete1190999
Kme 3
In my opinion, the extension of the moratorium could prove advantageous for borrowers who were facing an acute liquidity crunch. The postponement of EMIs will help them focus on the essentials. Similarly, financial intermediaries who have borrowed from banks will have more operational headroom. But one should avail the moratorium only if he/she is facing a liquidity crunch as it will increase the total cost of the loan.
ReplyDeleteNur Nadrah bt Ahmad Zaharuddin
1190884
Kme 3
Iqmal Syahmi Bin Hisham Muddin
ReplyDelete1190867
KME3
I totally agree on the action of Malaysian Banks that are provided a moratorium for their cuustomers that affect from COVID-19 especially for B40 categories. It will help them to reduce their payments burden. I'm feel grateful because its helps a lot of people especially for those running a small business. I hope that there are many others solution that can solve our society's current situation.
Muhammad Nasrulhaq bin Selamat
ReplyDelete1190861
KME3
In my views, I am surely agree with the action taken by the Bank Negara by providing a moratorium is very helpful to people especially for group B40 and start-up business who face difficulty during Pandemic Covid-19 to make loan repayment because they need to use money in other thing which is more important. With the moratorium in place, borrowers do not have to worry about loan repayment and can continue and strive their business.
Muhammad Fauzi Bin Ngatri
ReplyDelete1190809
KME3
In my opinion, the moratorium that provide especially for the B40 and M40 groups is the best action from government and financial institution because give many benefit to individuals and small- and medium-sized enterprises (SMEs) during the Movement Control Order to fight the spread of Covid-19. During lockdown, mostly people in Malaysia were affected and lose their income sources due the closure of all economy sector. All licensed banks and other financial institutions regulated by BNM are listed to provide offering postponement on loan and financing repayments for 6 months. So, it is very helpful for those who have financial problems to pay their loan during this pandemic. Borrowers must resume their loan repayments as usual based on the terms of agreement with their respective banks after the period of the moratorium.
Muhammad Luqman Hakim bin Padzal
ReplyDelete1190879
In my opinion, the moratorium of up to 6 months on loan repayments that have been introduced by banks and other financial institutions is a wise action especially for those who affected during coronavirus outbreak since some of them have lost their job. The deferment of loan repayment will be very helpful for those who are desperate and unable to repay the loan for the time being. However, there will be an interest charged which will be included in the total amount of debt. But, I think this is the only way for those who affected. Atleast, they will have a time for them to recover or reschedule their financing.
Terima kasih pihak bank kerana membantu rakyat malaysia dalam melaksanakan pembayaran pinjaman
ReplyDeleteNur Asyikin Binti Rahiman
ReplyDelete1190811
nice information, thank you for sharing.
I agree when the bank institution introduce this moratorium to the borrowers who severely affected in covid-19 situation. This is because it can less the debt burden and give their time to reschedule their finances.
ReplyDeleteAreana Neeza Binti Mohd Zamri
1190851
KME1
I agree with this introduced of moratorium as it helps to clients affected by job loss or experiencing salary reductions to enable them to reorganize their respective financial flows.
ReplyDeleteNur Hashilah Binti Abd Hamid
1190839
KME1
The implementation of the moratorium has to some extent reduced the burden of the people during this pandemic. It is voluntary, for those who can afford it and have no financial problems, there is no need to take it, it doesn't matter. But for those who are affected and face difficulties, they can take it so that the money can be used for more important expenses. However, the mechanism and approach of the implementation needs to be planned more efficiently, systematically and effectively so that any confusion by the people can be avoided.
ReplyDelete'Aaishaturrodhiah (1190888)
KME1
In my opinion, the efforts of banks to give a moratorium to their customers is a good measure because banks can maintain good relations with their customers and the moratorium is sure to benefit the community especially those with high debt commitments and at the same time, sources of income are affected as a result of COVID-19. However, this measure needs to be planned systematically so any problems can be avoided. The targeted moratorium is more suitable to be implemented so it will be more flexible to all banking customers. They can slowly start repaying their loan financing after the predetermined date, or they can further their moratorium.
ReplyDeleteNayli Azmi (1190793)
KME3
From my point of view, the financial relief action is the best way maintain their customer relationship as a well as to help the SME and others to lift a bit of burden on their shoulder from paying their debt. The financial relied program helped the flow of money in economy to be more active even with the existence of COVID. In this way, there are money movements in preserving the economy activities
ReplyDeleteNuraryanie bt Ramli (1190797)
KME4
NURUL IMANI BINTI MOHD DIT
ReplyDelete1190823
KME4
In my opinion, it is a good way that Malaysian banks are offering financial relief to their customers who are affected by the Covid-19 outbreak. It is because as we know, many people in our country are affected during this pandemic covid-19 especially their sources of income. They cannot manage to do works because of lockdown and have limited movement. There are a few companies or business need to close and cannot cannot operate normally. As a result, their income will be affected and they will not be able to cover the debts borrowed by the bank. If this moratorium on loan repayment is implemented, they have plenty of time to get back to work to pay off all debts. Besides that, we can say that Malaysia banks also want to maintain a good relationship with the customer by knowing what the customer needs. So that, customers will place high trust to the bank.
For me, I agree with Malaysian Banks take an action by providing a moratorium to their customers that affect from this pandemic. What I can say is, extension of loan repayment will really help those who are desperate and unable to repay the loan for the time being. This is because there is no interest or charge on late payment and will not be included in CCRIS for deferred loan repayment.
ReplyDeleteNurul Aini Nisa Binti Ridzuan (1190854)(KME4)
For me, I agree with Malaysian Banks take an action by providing a moratorium to their customers that affect from this pandemic. What I can say is, extension of loan repayment will really help those who are desperate and unable to repay the loan for the time being. This is because there is no interest or charge on late payment and will not be included in CCRIS for deferred loan repayment.
ReplyDeleteNurul Aini Nisa Binti Ridzuan (1190854)(KME4)
In my opinion, it is a good initiative offered by the banks to the borrowers who have lost their jobs and facing financial constraints due to the pandemic. This extension of repayment will give borrowers flexibilities to pay the loan based on their financial circumstances. I think it is a crucial strategy in supporting SMEs financial plus most of businesses and jobs would be able to survive the crisis.
ReplyDeleteNur Hidayah Binti Muhd Saifullizan
1190889
KME4
In my opinion,I totally agree with Malaysia's step to help people especially B40 group by offering moratorium for 6 months on loan repayment.It was a good decision in this pandemic Covid-19.As we know,many people are affected in terms of their income because of their work had been shut down.They did not have enough income to survive and repay the loan such as personal financing,hire purchase and education loan.This moratorium also helps a lot of business company such as corporate and SME to sustain in this pandemic time. So,in this pandemic time,we need to help each other to survive well and maintain the economy of our country.
ReplyDeleteNur Syakirah binti An'nas
1190812 (KME 4)
It is a good initiative from banks in Malaysia to provide moratorium offer for 6 months to help reducing customers' financial problems that been affected due to this pandemic. It was such a relief for retail customers and also for corporate and SME clients because they might having the difficulty during this hard time to pay back the installments. Providing the moratorium is the best approach to help customers who are directly or indirectly affected during this Covid-19 outbreak.
ReplyDeleteNurul Iman Bt Shamsul Kamal
Delete1190859
KME4
By giving moratorium for 6 months is the best choice gor the customers because it helps a lot of people who is struggling to pay back their debt during this pandemic.It also give them opportunity for them to stabilize their financing during this period.
ReplyDeleteNUR DANIA ARISYA BT HAIRULNIZAM
1191958
KME4
In my view,the bankings industry have made great decisions to give a moratorium facility for 6 month to those affected of covid 19 and it's a relief for them,It is because the certain people loses their job and this opportunity available to all people.Therefore, the moratorium measure is to ensure that every individual and trader has a 'cash surplus' in this challenging 6 months, so that they can survive and can spend and further move the country's economy.It also give a positive impact to the people can save from total income while the economy will also get a positive boost when the people and traders can continue to spend.Thus,some local banks have announced that interest rates will not be doubled.
ReplyDeleteNadhiratul Aini BT Abdullah
ReplyDelete1190848
kme4
Fatin Nurjeha bt Shafie (1190825)
ReplyDeleteKme 2
In my view, bankins sector have take a big and the best action by giving moratorium. It is because , by giving moratorium it helps people who was affected by Covid-19 especially for SMEs group.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteHannah Batrisyia binti Azmy (1190833)
ReplyDeleteKME 2
From my personal opinion, I agree with the bank's initiative of giving moratorium for a period of 6 months. During this COVID-19 pandemic, a lot of people have suffered and are struggling in all aspects, including in terms of money and financially. By giving this moratorium, it can actually be a way to lighten the burden of the ummah for the betterment of the maslahah.
The extension of the loan moratorium would provide further time and space for the customers to restructuring and re-strategise of their income and expenses, including property mortgages.
ReplyDeleteMashitoh Bt Che Mansor
1190814
KME2
Nur Alia' Binti Ahmad Nazri
ReplyDelete1190828
KME 2
In my opinion, the banking sector in Malaysia have made the great decision by giving moratorium for a 6 month period to their customer. The moratorium will definitely give the customer ample time to plan their finance especially during this pandemic.
In my opinion, BNM's action in offering a 6-month moratorium on loan repayments is a good and wise action. This is because, at the time pandemic covid-19 occurred many people lost their jobs. Then with such an initiative can reduce the burden of the people in paying the loan. So they can use their savings to cover daily living while looking for another job.
ReplyDeleteQURRATU AIN BINTI BAHARIN (1190813)
KME 2
it was a great oppurtunity provided by banking sector in Malaysia as it will help a lot of people especially SMEs group who suffered the financial crisis because of Covid-19 nowadays.
ReplyDeleteNor Khairani Binti Kamarudin (1190840) (KME2)
In my opinian, the bank's initiative of granting a 6-month moratorium is a good one. Many people have suffered and are still suffering as a result of the COVID-19 epidemic, notably in terms of money and finances.
ReplyDeleteNur Ain Hafizah Binti Abdul Halim 1190881
I strongly agree with the moratorium method introduced by the Government and Bank Negara Malaysia. Because this method will be able to help those who are experiencing financial crisis due to this pandemic, especially the B40 group. We can also see that the covid-19 pandemic has a lot of impact on the increase of the urban poor who have the obligation to pay relatively expensive monthly loans, so the moratorium method is very helpful to all groups and it is very worthwhile to implement.
ReplyDeleteMuhammad 'Umair Bin Halim 1190821
In my Opinion, When the covid-19 epidemic and PKP strike, the government has good intentions by recommending that local banks grant borrowers a moratorium on loans. The government's affirmative action should be commended in light of the people's larger interests. However, processes and procedures must be planned in a more orderly, methodical, and effective manner. It's also important to communicate in a nice, clear, and timely manner.
ReplyDelete