There is no denying that the effects of economic closures and restrictions due to the spread of the Covid-19 epidemic are felt disproportionately by all levels of society, especially those at the bottom of the income distribution. This COVID-19 not only caused unexpected hardships, but also disrupted many plans. Many who want to get married, have to postpone. Many lost their jobs and had to find new jobs. There are also many people who are starting to run out of savings. Maybe you are one of the people who have to postpone many plans because this difficult season can’t use money for purposes that feel not very important.

Postponement of bank installments or known as moratorium is the official postponement of monthly installment payments from the borrower or payer to the bank without any fines or penalty charges. In simple words, the customer does not have to pay the installments made with the bank according to the number of months specified in the offer announced moratorium. Installment payments will resume after the moratorium ends.

Applications for a six-month moratorium have begun to open but many feel divided about applying for the loan repayment facility. On social media, many also take a wait and see attitude in addition to wanting to gather information and understand it first before making a decision on the matter. Not all borrowers are able to repay loan installments like before the Movement Control Order (MCO) phase was implemented.

In addition, there are also those who take a neutral attitude and advise other borrowers to make decisions based on the situation they are facing. In the meantime, most borrowers who described the moratorium as the last resort to the financial pressure problem faced. The main focus of this moratorium is to help people and businesses who are currently in trouble due to COVID-19 in managing cash flow.

If borrowers feel squeezed and entangled with the current situation, the banking sector must provide appropriate support so that our credit culture is healthy at every level. But, if borrowers feel able to continue paying loans even at a small rate, this must be welcomed so that the national banking sector not be stuck in giving loans to eligible borrowers in the future.

The latest loan moratorium was introduced in line with Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH) and applications with automatic approval So if you are an individual borrower regardless of whether you are B40, M40 or T20, small and medium enterprises (SMEs) and micro enterprises affected by COVID-19 , you can apply for a loan moratorium for six months. You only need to apply with the respective bank and the application approval is given automatically.

What are the Conditions of the PEMULIH Moratorium?

  1. PEMULIH Moratorium application only for loans approved BEFORE July 1, 2021.
  2. You do not provide any documents and approval will be given automatically.
  3. At the time the PEMULIH moratorium application is made, you must not have outstanding installment payments for more than 90 days or bankruptcy proceedings / winding up of the company
  4. Borrowers who already have a moratorium before and follow all loan repayment schedules can also apply for a PEMULIH moratorium.
  5. Individual borrowers/SMEs who have payment arrears of more than 90 days are advised to contact the Credit Counseling and Management Agency (AKPK) for free financial advice and assistance.
  6. Credit card debt cannot apply for a PEMULIH moratorium, but you can apply to convert this credit card debt into a 3-year loan that helps you reduce the interest rate.

Acceptance of this moratorium will also not affect the borrower’s Central Credit Reference Information System (CCRIS) report, as announced by Bank Negara Malaysia. Borrowers, however, need to understand and be aware of the loan conditions that will be amended if they accept this moratorium, such as new interest rates, longer loan periods and so on.

You just need to contact the respective bank and don’t forget to read all the conditions that apply, so you won’t be surprised later! So, be a smart user.