Credit card, mortgage repayments deferred

KUALA LUMPUR, 25 March 2020:

To help ease cashflow shortfalls due to the businesses shut down to contain the Covid-19 outbreak, Bank Negara Malaysia (BNM) today announced consumers can seek to defer payments on loans and credit card balances.

In a statement today, BNM said banking institutions will offer to convert outstanding credit card balances into a three-year term loan with reduced interest rates to help borrowers better manage their debt.

Banks will also will offer a deferment of all loan/financing repayments for a period of six months, with effect from April 1.

“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,” BNM said.

“This offer is applicable to performing loans, denominated in ringgit, that have not been in arrears for more than 90 days as at April 1.”

Those who choose to keep to existing payment schedules can also do so, BNM added.

It said the same repayment flexibility will also be offered to firms and businesses, subject to conditions imposed by banks on a case-by-case basis.

BNM said these measures will enable viable corporations to preserve jobs and swiftly resume economic activities when conditions improve.