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 three-year term loan with reduced interest rates to help borrowers better manage their debt,” it said.