13 October 2021

The new URUS Programme for B50. And, how to define B50 category?

As reported on TheEdge early this month, banks have come up with a counter-proposal to the government's interest waiver plan, and some banking sources say it has been submitted to the authorities.

On Sept 14, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz announced that the ministry had instructed banks to immediately work on the exemption from interest payments for bank loan moratorium recipients under the B50 category — indicating Malaysians in the bottom 50% income bracket group — for the October to December period of 2021.

Today, Prime Minister Datuk Seri Ismail Sabri Yaakob has announced that the  Financial Management and Resilience Programme (URUS) for borrowers in the B50 income group will be set up by the banking sector soon.

Yeah! we finally can have a glimpse of it. However, what is the programme actually? And, of course, the most popular question being asked by all of you is: "Am I fall under the B50 category?"

Details as per below:
  • URUS is a comprehensive financial aid initiative that will be offered to affected borrowers from the B50 and B40 income groups
  • Formulated by the banking industry together with Bank Negara Malaysia (BNM) and the Counselling and Credit Management Agency (AKPK)
  • Facilities to be provided include:
    • interest exemption for 3 months
    • smaller installments for up to 24 months
    • also, with a lower interest rate !!!
  • Unsecured loans and credit cardholders can also benefit from a lower interest rate
  • B50 is those with a gross household income of less than RM5,880 a month
  • More details on URUS can be obtained from the Ministry of Finance. (I am unable to get it yet)



Who is eligible for support under URUS?

B50 customers who meet ALL of the following criteria are eligible to apply for URUS:
  • Already under an existing repayment assistance programme (e.g. Targeted Repayment Assistance, PEMERKASA Plus, PEMULIH, bank’s own rescheduling and restructuring, etc.) as at 30 September 2021; and
  • Have a household income of up to RM5,880; and
  • Whose loan/financing is still performing (not in arrears exceeding 90 days) as at the date of their application; and
  • Experiencing loss of employment or at least a 50% reduction in income.
Note: Your bank may request for basic documentation to verify your eligibility.

What assistance can I get under URUS?

You will receive a personalised financial plan that sets out a monthly debt repayment amount and schedule for a period of up to 24 months. The plan will take into account all your existing debt obligations and the amount of income you can currently afford to set aside to repay your debt, after providing for living expenses.

The personalised financial plan will include:
  • an interest/profit waiver for a period of 3 months;
  • deferred payments and other options including reduced installments to help manage overall debt burden in line with your affordability; and
  • development, education, and advisory support to help you manage your finances and become more financially resilient.
 As an added convenience, customers with borrowings/financing from multiple banks will only need to apply to one of their banks, after which AKPK will help consolidate the details of their borrowings/financing across banks and develop a
holistic and viable repayment assistance plan for the customer.

When can I apply for URUS?

The application for URUS is open from 15 November 2021 to 31 January 2022.

Will my credit record (CCRIS) be affected if I receive assistance under URUS?

Loan/financing accounts under URUS will be identified in your Central Credit Reference Information System (CCRIS) credit report. This will facilitate follow-up and monitoring by AKPK and the banks in order to provide any further support that you may require during the programme.

The identification will be removed once you exit the scheme, which can last between 6 months to 24 months from the date of enrolment into URUS. This minimum of 6 months corresponds with the period required to complete the financial education programmes under AKPK that are aimed to improve the financial resilience of borrowers.

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