FAQs TARGETED REPAYMENT ASSISTANCE

No Question Answer

1. Who will be eligible for the 1. Customers from the B40 group and registered in the
Targeted Repayment database as recipients of Bantuan Sara Hidup (BSH) /
Assistance? Bantuan Prihatin Rakyat (BPR). A customer whose spouse
is a BSH /BPR recipient will also be eligible.

2. Micro finance customers with financing up to RM150,000;

3. Micro enterprises and small and medium enterprises

(SMEs) that are not allowed to operate during the MCO
period;

4. Customers from the non-B40 group (including M40 and

T20) who become unemployed in 2020 and 2021, and
remain unemployed;

5. Customers from the non-B40 group (including M40 and

T20) who have experienced a reduction in income. This
includes reduction in salary, allowances, commissions and
household income. Applies for any level of income
reduction (i.e. no minimum threshold applies).

2. What are the options The following assistance will be provided to eligible customers:
available under the
a. Three (3) months deferment of monthly instalments
Targeted Repayment
(Moratorium); or
Assistance?
b. 50% reduction in monthly instalments for a period of
six (6) months; or

c. Restructuring (for Hire Purchase and fixed rate

Financing / Loan).

The assistance is available to eligible customers for selection

confirmation from 1 June 2021 until 31 December 2021.
No Question Answer

3. What type of facilities are Any facilities / financing approved before 1 June 2021 and not
qualified for the Targeted in arrears exceeding 90 days from the date of application for
Repayment Assistance? the following facilities:

a. Home Financing / Loan

b. Personal Financing / Loan

c. Hire Purchase Financing / Loan

d. Micro Financing with financing up to RM150,000 /

Loan

e. Loan/ Term financing that have been converted from

credit card balances

4. Are customers who are Customers are eligible for the Targeted Repayment Assistance
already receiving the when the Extended Targeted Repayment Assistance expires.
Extended Targeted This is to avoid any overlap between assistance packages.
Repayment Assistance
(ETRA) eligible to apply for
Targeted Repayment
Assistance?

5. What are documents a) Customers from the B40 group - no documents required;
required to apply? b) Micro finance customers - no documents required;
c) Micro enterprises and small and medium enterprises
(SMEs) that are not allowed to operate during the MCO
period – no documents required;
d) Customers from the non-B40 group (including M40 and
T20) who become unemployed in 2020 and 2021 – letter
from employer;
e) Customers from the non-B40 group (including M40 and
T20) who have experienced a reduction in income – no
documents required.
*The Bank has the right to request for supporting documents (if
necessary)
No Question Answer

6. Is there any compounding The Principle of Beneficence (Ihsan) is applied under this
profit / interest charged Targeted Repayment Assistance in alleviating unprecedented
under this Targeted social, economic and financial hardship suffered by the eligible
Repayment Assistance? customers due to COVID-19 pandemic. The Principle of Ihsan
is a fundamental value in Islamic finance and in line with the
objectives of Shariah (Maqasid Shariah) whereby Islam
encourages this principle to be applied in all matters including
muamalah (transaction) following the verse of Al-Qur’an in
Surah al-Nahl (verse 90) and also the Sunnah from Prophet
Muhammad SAW.

Based on this principle, there will be no compounding profit /

interest charged under this Targeted Repayment Assistance.

7. When will the assistance The assistance will be made available in the following month
start? from the date of application (for those who have not been
approved in any Extended Targeted Repayment Assistance).

8. Will the Bank impose No. The Bank will not impose any additional conditions.
conditions (such as
regularisation of the
account) prior the
assistance?

9. Can the Bank decline The Bank shall not decline application from customers who are
application from customers under Salary Deduction who meet the eligibility criteria.
who are under direct salary
deductions, such as
individuals under Angkasa?

10. How to apply for the Application may be submitted via BSN’s website
assistance? https://www.bsn.com.my.

11. What is the expected Acknowledgment of receipt of the applications via SMS will be
timeframe to process the made within 24 hours.
application?
The decision of the application (approved or rejected or
countered) will be notified via SMS within five (5) days.
No Question Answer

12. Will my credit score in the No, it will not affect the CCRIS record if you have successfully
Central Credit Reference applied for the Targeted Repayment Assistance before
Information System 31 December 2021.
(CCRIS) report by Bank
Negara Malaysia be
affected if I take up the
Targeted Repayment
Assistance?

13. What are my options if my You may contact the Credit Counselling and Debt
application for Targeted Management Agency (AKPK) at 03-2616 7766 or visit their
Repayment Assistance is website at www.akpk.org.my for more information.
not approved?

14. Will my financing/loan Yes, if the customer takes additional takaful/insurance

account be covered by coverage, the Financing will be covered by takaful/insurance
takaful/insurance during the and the additional takaful/insurance contribution is at the
extended financing / loan customer's expense.
period?
15. What is the process that Customers may contact Prudential BSN Takaful Berhad to get
needs to be done if I am a quote on takaful/insurance contributions that need to be paid
interested in adding for the extension of the coverage period to be in line with the
takaful/insurance coverage financing/loan period.
to be in line with the
financing/loan period? Customers may contact the Customer Service Centre at 03-
20537188 or via email to customer@prubsn.com.my.
16. Are there any additional Yes, additional takaful/insurance contributions will be
costs to extend the calculated based on the difference between the amount of
coverage period? coverage according to the existing takaful/insurance certificate
and the amount of the new balance at the end of the loan
period.
17. Will an additional certificate No, additional certificates will only be issued at the request of
be given to me if I want to the customer.
extend the existing
takaful/insurance period?
No Question Answer

18 Is there any increase in Yes. There is an increase in financing / loan cost due to profit /
financing / loan costs when interest accrued is chargeable over the extended period.
the loan period is extended? These, however are only claimed /payable upon full settlement
of the outstanding balance. Please refer to the illustration.

Note:

Customers are advised to evaluate the new estimated monthly

instalment, the total financing/loan period and costs incurred (if
any) before making a decision to apply/take up the Targeted
Repayment Assistance.
Below are 2 examples (for illustration purpose only) to help you understand the impact on your total
financing/loan payment when you sign up for repayment assistance

Example 1: Mortgage/Retail Financing/Loan (Floating rate financing / loan)

Principal financing / loan Amount : RM200,000

Profit / Interest Amount : RM66,288

Profit / Interest Rate : 4.00%

Financing / Loan Tenure : 180 months

Remaining Financing / Loan Tenure : 165 months

Original Repayment Option 1 Option 2

Amount
3-month Moratorium 50% Instalment for 6
months (no tenure
extension)

Monthly Instalment

Month 1 to Month 3 RM1,480 -

Month 4 onwards RM1,480 RM1,480

Monthly Instalment

Month 1 to Month 6 RM1,480 RM740

Month 7 onwards RM1,480 RM1,480

Tenure Extended - 3 months 6 months

Total payable RM266,288 RM268,245 RM269,241

Total profit / interest RM66,288 RM68,245 RM69,517

Impact to you if you were
to enrol under the
repayment assistance.
- Increased in total payable Total profit / interest will
results from the deferred be higher as tenure is
monthly instalments and extended by 6 months.
profit / interest accrued
during moratorium and
tenure is extended by 3
months.

You are required to pay

the deferred instalment
amount at maturity /
during settlement.

The table above includes the following assumptions:

1. Account is not overdue at the point of application
2. There is no change to the BR/BRI/BLR/BFR throughout the remaining financing / loan tenure
Note: For Islamic financing, total payment will not exceed the agreed Bank’s Sale Price (whichever is
applicable)
Example 2: Hire Purchase Financing/Loan (Fixed rate Financing / Loan)

Principal Financing / Loan Amount : RM53,700

Profit / Interest Amount : RM15,224

Profit / Interest Rate : 3.15%

Financing / Loan Tenure : 108 months

Remaining Financing / Loan Tenure : 91 months

Original Repayment Option 1 Option 3

Amount
3-month Moratorium Restructuring

Monthly Instalment

Month 1 to Month 3 RM639 -

Month 4 onwards RM639 RM639

Monthly Instalment RM639 RM482

Tenure 108 months 108 months 132 months

Total profit/interest RM15,224 RM15,224 RM16,371

Impact to you if you were Your financing / loan Financing / Loan

to enrol under the tenure remains the
repayment assistance. same, which you are
required to pay the
deferred instalment
amount at maturity /
during full settlement.
restructuring amount is
based on the remaining
principal balance at the
point of application.