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Bank Loan Moratorium Extended For Selected Groups, Says PM

Bank Loan Moratorium Extended For Selected Groups, Says PM

If you lost your job or had pay cuts, this is for you.

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The government has agreed to extend the targeted moratorium for those who are still reeling financially from the effects of Covid-19, Prime Minister Tan Sri Muhyiddin Yassin announced today.

For individuals, the moratorium will be given depending on their current situation:

  • Those who lost their jobs in 2020 and are still looking for a job, the moratorium for them will be extended for 3 months and can further be extended according to the individual’s situation.
  • For those who are working but suffer from pay cuts, the monthly repayment amount for loans will be lowered according to how much salary has been decreased for 6 months. Borrowers can ask for extension depending on their pay at the end of the period.

As of 20 July, he said more 7.7 million borrowers or 93% Malaysians have benefited from the moratorium which is worth RM38.3 billion.

He also announced that banks will commit on helping individuals and SME borrowers such as hawkers or the self-employed with initiatives such as:

  • Only pay the interest for a period of time.
  • Extend the loan period to reduce the monthly repayment amount
  • Give other exemptions until the borrower has reached financial stability.

In March, the government announced a six-month moratorium to alleviate the burdens of Malaysians who are struggling from the impact of Covid-19.

The pandemic has crippled many sectors as the government enforced the Movement Control Order (MCO) on March 18 due to an increase in the number of cases.

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