Banks to cut loan repayments

PETALING JAYA: Banks will reduce loan instalment payments, an exercise that will be completed by the first quarter of this year, the Association of Banks said.

Cus­tomers who prefer to retain their repayment amounts need to get in touch with their banks, it said in a statement.

The association said that the move by all commercial banks to cut instalment amounts follows the request by the Government to help borrowers facing difficult economic times.

“Lower monthly loan repayments will allow for more disposable income to be in the hands of the public and we reaffirm our member banks’ commitment to continue to be reasonable as well as responsive to the public’s needs,” it said in a statement yesterday.

The association said the move to reduce repayments was now possible following Bank Negara’s announcement of the reduction in the Overnight Policy Rate on Tuesday.

That move would bring about the reduction in the base lending rates of banks.

With the reduction, the association said all commercial banks had agreed to cut loan repayment amounts across the board and maintain the original repayment period.

However, it said borrowers also had the option of maintaining their monthly instalment amounts and have a shorter repayment period.

The association said borrowers could consult their banks’ hotlines if they have queries on the proposed revision and other facilities.

The hotlines are published at the association’s website www.abm.org.my.

Customers can also call the association’s toll-free service ABMConnect at 1-300-88-9980.