Islamic banking association explains assistance options for borrowers, says new contracts required

Aibim said borrowers now have two assistance options to choose from, either a three-month repayment deferment or a reduction of the instalment amount by 50 per cent for six months. — Bernama pic
Aibim said borrowers now have two assistance options to choose from, either a three-month repayment deferment or a reduction of the instalment amount by 50 per cent for six months. — Bernama pic

Follow us on Instagram and subscribe to our Telegram channel for the latest updates.


KUALA LUMPUR, Nov 7 — The Association of Islamic Banking and Financial Institutions Malaysia (Aibim) said borrowers now have two assistance options to choose from, either a three-month repayment deferment or a reduction of the instalment amount by 50 per cent for six months.

In a statement today, Aibim said the assistance would be extended for facilities that were approved before October 1, 2020, and were not in arrears for more than 90 days on the date the application for assistance was made.

“However, for fixed rate Islamic financing, customers need to sign new contracts in accordance with shariah requirements.

“The cost of a new agreement varies between banks. We encourage customers to contact their respective banks for more information,” it said, adding that the targeted repayment assistance was effective until June 30, 2021.

Aibim also advised the public to adhere to the standard operating procedures to curb the spread of Covid-19 and ensure that all banking communications and transactions were from and through authentic sources.

In his Budget 2021 speech yesterday, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said there would be no automatic moratorium extension, but there would be updates to the assistance that borrowers were eligible to receive. — Bernama

Related Articles