Malaysian banking sector continues to support borrowers

The Financial Management and Resilience Program (URUS) has been launched for individual borrowers who continue to be affected by the pandemic.

URUS is a program co-created by the country’s banks and the Credit Management and Advisory Agency (AKPK or Agensi Kaunseling dan Pengurusan Kredit), according to a joint statement by the Association of Banks Malaysia (ABM), Association of Islamic Banking and Financial Institutions. Malaysia (AIBIM), Association of Development Finance Institutions Malaysia (ADFIM) and AKPK.

The press release states: “The support provided by URUS will allow individual customers to breathe a bit to regain their financial health. The program will see banks set aside around 1 billion ringgit ($ 240.5 million) to finance the cost of reducing interest / profit costs, including the interest / profit exemption for these vulnerable B50 customers. .

The scheme is open to individual customers benefiting from an existing repayment assistance program (For example, Targeted repayment assistance, PEMERKASA Plus, PEMULIH, rescheduling and bank restructuring) as of September 30, 2021 and meeting the following criteria:

  • They come from income segment B50, that is, clients with gross household income of RM 5,880 (US $ 1,414) or less, as defined by the Department of Statistics Malaysia (DOSM).
  • They either experienced a job loss or an income reduction of at least 50%.
  • Their loan / financing is still performing well (no arrears exceeding 90 days) on the date of their request.

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AKPK will develop repayment plans with a waiver of interest / profits for a period of three months, starting the month following the client’s integration into the program; or a three month interest / profit waiver with reduced payments for a period of up to 24 months in total.

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