Prime minister Tan Sri Muhyiddin Yassin has announced a six-month loan repayment moratorium for all Malaysians. This is similar to what was approved in the first MCO early last year.

While financial institutions have continued to provide targeted loan assistance to individuals impacted by Covid-19 and movement control orders, this time around, the moratorium is for everyone, from the B40 segment to the country’s top 20% earners (T20), and micro entrepreneurs.

There will be no need for proof of pay reduction or job loss, and no documents are required. Applications will open on July 7, and borrowers just need to apply with the bank and sign the amended loan agreement form. Approval will be automatic for individual borrowers. Small and medium enterprises (SMEs) can also apply, but for companies, it’s subject to review by the banks (not automatic).

“I hope that this moratorium initiative will help individual borrowers and SMEs in managing their cashflow during this challenging period. However, I would like to advice borrowers to use this offer wisely and if you’re not in desperate need, do not add to your financial commitments,” the PM added in his Covid-19 Pemulih bantuan announcement this evening.