Prime Minister Ismail Sabri Yaakob said this programme, which was formulated by the banking sector along with Bank Negara Malaysia (BNM) and the Credit Counselling and Debt Management Agency (AKPK), would be offered to affected B50 borrowers who earn a gross household income of below RM5,880 a month.
FMT takes a look at what URUS is and how it can help the B50 group.
What is URUS?
URUS is an assistance package that offers repayment assistance and development support such as personalised financial plans and financial education programmes.
At its core, its aim is to assist vulnerable borrowers who have been impacted by the Covid-19 pandemic and those who continue to experience cash flow difficulties.
Who is eligible for support?
Besides having a household income of not more than RM5,880 a month, B50 borrowers must already be under an existing repayment assistance programme under one of the government’s aid packages such Pemerkasa Plus, Pemulih, or others, as of Sept 30.
An individual would also have had to experience a loss of employment or at least a 50% reduction in income. Those whose loan or financing is still performing (not in arrears for more than 90 days) as of the date of their application will also be considered.
According to AKPK, all criteria above have to be met in order for an applicant to qualify for URUS.
What will the assistance package include?
An individual 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 includes an interest waiver for a period of three months, deferred payments and other options including reduced instalments to help manage the overall debt burden in line with an individual’s affordability. It will also include development, education and advisory support to help manage an individual’s finance.
AKPK adds that customers with borrowings from multiple banks will only need to apply to one bank, after which AKPK will help consolidate all details and develop a viable repayment assistance plan for a borrower.
Borrowers will also have access to AKPK financial advisers to review their personalised financial plan or seek advice on any financial management issues. These advisers will help borrowers deal with their banks on matters relating to their loan or financial repayments under URUS.
When and how do you apply for URUS?
The application for URUS is open from Nov 15 to Jan 31, 2022. An individual should apply for URUS directly from any bank. Basic documentation is needed to verify your current income or employment status.
The banks will then verify your eligibility and submit your application to AKPK to produce your personalised financial plan.
Will URUS affect your credit report?
Loan or financing accounts under URUS will be identified in an individual’s Central Credit Reference Information System (CCRIS) credit report.
However, the identification will be removed once you exit the scheme, which can last for between six months and 24 months from the date of enrolment. This minimum of six months corresponds with the period required to complete the financial education programmes under AKPK that are aimed to improve the financial resilience of borrowers.
The goal of the free education programme is to help enhance borrowers’ financial management knowledge and skills in key areas such as goal setting, cash flow management, borrowing or financing basics, managing debt and wealth management.
For more information, you can contact any one of your banks or click on this link.