If you’re looking to apply for a personal loan from the bank, take note that there will be an additional requirement before you submit your application.
Bank Negara Malaysia (BNM) recently announced that individuals who want to apply personal loans of over RM100,000 will have to sit for a financial education course first starting 2027.
No course, no loan
In a policy document issued by the central bank yesterday (Sept 30), BNM said banks must compel applicants to attend and complete the module before applying for any new personal financing product where the financing amount exceeds RM100,000.
The module will be provided by the banks or the Credit Counselling and Debt Management Agency (AKPK), reported FMT.
BNM added that the aim of the financial course was to help borrowers make prudent and smart financial decisions.
A bank may also encourage financial consumers who are assessed to be of higher risk to attend and complete a financial education module prior to applying for any new personal financing product.”
This is also applicable to those with poor financial literacy or insufficient experience in using financial services or products.
Under the policy document, lenders will also be required to disclose the effective interest rate to consumers, reported The Edge.
These measures come in light of fierce competition within Malaysia’s personal financing sector, which caters to 32 million people and is supported by over 36 local and foreign banks.
BNM also highlighted certain trends in lending practices, such as new financial products that may appear affordable but in turn encourage excessive debt accumulation, which causes borrowers exposed to financial woes due to insufficient buffers.
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