Can SMEs apply directly to banks for loan flexibility?

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SMEs Can Apply Directly to Banks for Loan Flexibility

Small and Medium Enterprise (SME) borrowers and businesses can directly approach their respective banks to apply for loan flexibilities, commencing August 7, 2020. Bank Negara Malaysia (BNM) has instructed banks to implement a simplified application and documentation process to facilitate these applications. This initiative aims to provide targeted repayment assistance to SMEs affected by the economic impact of Covid-19.
Simplified Application Process for SMEs

BNM has communicated to all banking institutions the necessity of a streamlined application and documentation procedure for borrowers seeking repayment flexibilities. This directive ensures that SMEs can access assistance without undue administrative burden. The banks are committed to offering these flexibilities, with each institution considering the unique financial circumstances of individual SME borrowers when determining appropriate packages.
Minimum Six-Month Flexibility and Potential Extension

The banking industry has committed to providing repayment flexibility to all affected SME borrowers for a minimum period of six months. Furthermore, banks will evaluate the possibility of extending these flexibilities beyond the initial six-month timeframe, taking into account the borrower's financial situation at that point. This approach is designed to offer a sustained period of support for businesses navigating ongoing financial challenges.
"One-Stop" Centres and BNM's SDRS

For SMEs that hold loans with multiple banking institutions, a "one-stop" centre is available to help them work out a consolidated assistance package. This initiative aims to simplify the process for borrowers dealing with several financial providers. Additionally, BNM's Small Debt Resolution Scheme (SDRS) will be involved in monitoring the progress of banks in assisting SMEs that continue to experience temporary financial difficulties, ensuring that support mechanisms remain effective.

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Can SMEs apply directly to banks for loan flexibility?

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