June 28, 2021 @ 5:49pm
KUALA LUMPUR: A six-month bank loan moratorium will be granted to all individual borrowers and micro-entrepreneurs to help them weather the economic effects of the Covid-19 pandemic.
Prime Minister Tan Sri Muhyiddin Yassin, in unveiling the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih) assistance programme today, said the moratorium will be given to all individuals, regardless of their income bracket, and would be approved automatically after application.
"There will be no conditions such as income reduction, no checks whether you have lost your job, and no need for documentation to be submitted for application (of the moratorium).
"You will only need to apply, and approval will be given automatically," he said in a special televised address this evening.
This facility, he said, would also be offered to affected small and medium enterprise (SME) operators, subject to review and scrutiny by the bank, with applications opening from July 7.
"Borrowers would only need to apply and sign an agreement to amend the relevant loan terms," said Muhyiddin.
He said since the introduction of the Pemerkasa Plus package, over 250,000 eligible borrowers have had their moratorium applications automatically approved to date, only having to choose between a three-month moratorium or a 50 per cent reduction in installment payments for six months.
The government, he said, understands the concerns of the people at this time, adding that many who were affected do not only come from the B40 group.
"I have heard and read many similar grievances from the M40 and T20 groups who have more dependents, as they are also helping family members or relatives affected by Covid-19."
He hoped the moratorium would help individual and SME loan borrowers in managing their cash flow throughout this challenging time.
"However, I would also like to advise you to make proper use of this moratorium offer, and if not urgent, do not make additional financial commitments."