KUALA LUMPUR (Oct 19): Repayment assistance will remain available for borrowers whose income is affected by the pandemic, said Bank Negara Malaysia (BNM).

According to BNM, borrowers facing challenges have generally requested for reductions in monthly repayment instalments or extension of the moratorium.

"Borrowers who decline repayment assistance for now would still be able to apply for targeted assistance throughout 2020 and into 2021 if their financial circumstances change in the future," the central bank said in a statement today.

BNM said the targeted approach to repayment assistance extends relief measures more sustainably, while lending strength to the economic recovery.

It said many borrowers are now able, and have started, to resume repayments which would help reduce the overall cost of borrowings.

Furthermore, borrowers who require assistance at this time have the opportunity to customise their repayment plans based on what they can afford.

As of Oct 9, 640,000 applications for repayment assistance had been received, with an approval rate of 98%, said BNM.

Of these, 40% were granted an extension on the loan moratorium.

These consisted mainly of individuals who have been recently made unemployed, as well as businesses in sectors that may still be experiencing significant operating constraints caused by the pandemic.

The other 60% received approval to have their instalments reduced. According to BNM, borrowers who requested a reduction in instalments included those in the B40 group. These instalment reductions put individuals as well as small and medium enterprises on a path to paying down their loans at levels they are comfortable with, it said.

"Among individuals who requested repayment assistance to date, about 50% have a monthly income of RM5,000 or less. Meanwhile, 28% were those with a monthly income of between RM5,000 and RM10,000.

"Borrowers in other segments who need assistance are also being supported, including those who earn variable incomes, and those employed in sectors that have been hit the hardest, such as the tourism sector," it said.

"BNM urges affected borrowers to come forward to apply for repayment assistance with their banks through the various channels available," said the central bank.