Those borrowing more than RM100k to be sent for courses<\/p>\n
PETALING JAYA: The new rule requiring personal loan applicants who borrow more than RM100,000 to attend financial \u00adeducation courses will help consumers make better decisions, says the Federation of Malaysian Consumers Associations (Fomca).<\/p>\n
Its chief executive officer Dr Saravanan Thambirajah said the measure announced by Bank Negara is timely, as many borrowers underestimate repayment burdens and the risks of default.<\/p>\n
\u201cThe modules can help high-risk \u00adborrowers understand the dangers of over-borrowing, be cautious about \u00adunsustainable commitments, and better evaluate whether the loan will genuinely serve their financial needs,\u201d he said.<\/p>\n
Saravanan added that financial edu\u00adcation is critical for preventing households from being trapped in long-term hardship.<\/p>\n
\u201cWith effective modules, borrowers will be more informed about interest costs, repayment schedules and the long-term impact on their financial well-being.\u201d<\/p>\n
Automotive journalist Caleb Fong said the move is good to safeguard younger or less experienced borrowers.<\/p>\n
\u201cFor younger people like us, financial decisions can be overwhelming. The modules could be useful, provided they are practical and not filled with information we already know,\u201d he said.<\/p>\n
Animal activist Myza Nordin, 57, said the requirement is a brilliant move, noting that many Malaysians were already burdened by loans they could not afford.<\/p>\n
\u201cServicing a large loan can be a major commitment that could take a heavy toll on borrowers and their families.<\/p>\n
\u201cThis is especially so when people take loans simply because they can, and not because there is an urgent need,\u201d she added.<\/p>\n
Self-employed Padma Zachariah, 58, said servicing huge loans could have a lifelong impact.<\/p>\n
\u201cHaving never taken a personal loan, I can see the value of ensuring people understand the responsibility that comes with borrowing such large amounts,\u201d said Padma.<\/p>\n
Finance executive Kamal Kanapathy, 50, said the policy is a significant step forward, but its success would depend on implementation.<\/p>\n
\u201cThe quality and accessibility of the \u00adfinancial education modules will be paramount.<\/p>\n
\u201cThe provision empowering lenders to recommend the module to high-risk borrowers, for any loan amount, would also be a welcome safeguard that should be applied diligently,\u201d he said.<\/p>\n
Entrepreneur Charles Manickam, 58, said the initiative would help individuals and households exercise greater care in managing their finances.<\/p>\n
\u201cIt will also create greater awareness of potential risks and pitfalls, including legal implications and insolvency if debts are not paid,\u201d he said, though adding the \u00adsuccess of such a programme was \u201cdebatable\u201d.<\/p>\n
Accountant Long Paul Lin, 48, said the new policy could help prevent more young people from being declared bankrupt.<\/p>\n
\u201cBanks easily give out personal loans and sometimes individuals take the maximum amount they qualify for without worrying about the consequences. As a result, they either live from hand to mouth for years while servicing the loans, or end up bankrupt when they cannot pay,\u201d she said.<\/p>\n
Lawyer CR Chua said while financial education is good, most Malaysians do not qualify for a RM100,000 personal loan.<\/p>\n
\u201cThose who do are already high net worth individuals who probably know the system better than most of us,\u201d he said.<\/p>\n
He suggests that Bank Negara extend the module to all personal loan applicants, since those who end up in trouble are \u00adusually from lower income groups.<\/p>\n","protected":false},"excerpt":{"rendered":"Those borrowing more than RM100k to be sent for courses PETALING JAYA: The new rule requiring personal loan…\n","protected":false},"author":2,"featured_media":176611,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[78763,78766,8665,84,42589,4176,78762,78764,29752,78767,4174,4175,78765,78761,56,54,55],"class_list":{"0":"post-176610","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-bank-negara","9":"tag-borrowers","10":"tag-borrowing","11":"tag-business","12":"tag-courses","13":"tag-finance","14":"tag-financial-education","15":"tag-fomca","16":"tag-high-risk","17":"tag-malaysian","18":"tag-personal-finance","19":"tag-personalfinance","20":"tag-repayment","21":"tag-rm100k","22":"tag-uk","23":"tag-united-kingdom","24":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/176610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=176610"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/176610\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/176611"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=176610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=176610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=176610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}