Banks To Provide Additional Targeted Repayment Assistance

When tabling the 2021 budget, the government announced that it would improve Targeted Loan Repayment Assistance (TRA). Following this announcement, Bank Negara Malaysia also released additional details on these measures.

As part of the enhanced TRA, additional repayment assistance will be deployed for:

  • B40 individuals benefiting from Bantuan Sara Hidup (BSH) / Bantuan Prihatin Rakyat (BPR)
  • Microenterprises for facilities with approved amounts up to RM 150,000

Borrowers in these categories can ask to defer their monthly payments by three months or reduce them by 50% for six months.

This assistance will be available to eligible borrowers between November 23, 2020 and June 30, 2021.

Which facilities are eligible?

  • It covers installations that were approved before October 1, 2020
  • These installations should not be more than 90 days late.

How do I apply for Enhanced Targeted Loan Repayment Assistance (TRA)?

To apply for EMR, eligible borrowers must confirm their repayment option with their bank. No additional documentation is required except in the case of leasing loans and fixed rate Islamic finance.

Other improvements

According to BNM, she also worked with the banking industry to make these improvements:

  1. Easier documentation. For registered BPN M40 beneficiaries, and whose household income has been reduced due to the pandemic, banks will accept borrowers ‘requests for reduced monthly payments based on the borrowers’ self-declaration of income.
  2. Dedicated support service. Microenterprises will be able to request reimbursement assistance via a dedicated Agensi Kaunseling dan Pengurusan Kredit (AKPK) micro-helpdesk from November 9. The virtual helpdesk, which will provide free financial advice, can be accessed at www.akpk.org.my/microhelpdesk.
  3. Assessment of the overall income of borrowers. Banking processes will be streamlined to take into account the borrower’s income, as well as how their spouse’s income has been affected by the pandemic – this in order to get a more holistic assessment of the borrower’s financial situation .

BNM adds that for those facing financial difficulties during this pandemic, repayment assistance remains available for all income groups or SMEs that need help. For those borrowers who can afford to do so, it will make sense to start paying off your debts again, as you will avoid the accumulation of additional interest charges that you will have to pay off in the future.

For more information on TRA, visit Bank Negara Malaysia.

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Jothi Venkat

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