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Covid-19: Bank customers get to delay repayment of loans for 6 months

TheMole
Written by TheMole

KUALA LUMPUR — March 24, 2020: Banks will allow their customers to delay repayment of loans, including mortgages and hire-purchases, for six months effective April.

This was decided by Bank Negara today to assist borrowers, including individuals and small and medium sized enterprises, experiencing constraints due to the Covid-19 outbreak.

The central bank informed heads of financial institutions that they should provide individuals and SMEs with adequate information on how the suspended repayments will be treated during the moratorium.

The moratorium is applicable to ringgit-denominated loans or financing that are not in arrears exceeding 90 days as of April 1 but does not apply to credit card balances.

For credit card balances, customers should be offered the option to convert the balances into term-loans of not more than three years.

Banks are also strongly encouraged to facilitate requests for a moratorium for corporate borrowers.

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