Bank Negara Malaysia (BNM) has introduced a new requirement: consumers applying for personal financing above RM100,000 must complete a financial education module before approval.
New Policy: Financial Education for High-Value Loans
- The directive comes under BNM’s updated Policy Document on Personal Financing, released recently.
- The goal is to promote prudent borrowing behavior and strengthen consumer protection.
- BNM says the requirement supports its broader reforms, which include prohibiting flat-rate interest / Rule of 78 methods and ensuring disclosure of effective interest rates.
Why Is This Important?
This measure is significant because:
- It targets large personal loans, where the risks of overextension are higher.
- It reinforces financial literacy, giving borrowers tools to assess long-term costs and risks.
- It aligns with BNM’s push for more transparency and accountability in personal financing.
Who Will Be Affected
- Anyone who applies for a personal financing facility exceeding RM100,000 with licensed banks, Islamic banks, or development financial institutions.
- The module must be completed before loan approval.
- Existing borrowers under RM100,000 are not affected by this new requirement.
What Borrowers Should Do
- If you plan to apply for a large personal loan, be ready to go through the financial education module.
- Use this opportunity to learn about interest, repayment schedules, hidden fees, and your capacity to borrow.
- Always check the effective interest rate, not just the nominal rate.
Leap Concept’s View
At Leap Concept, we welcome this move by BNM. It helps protect consumers from making risky financial decisions. We encourage all borrowers, especially those applying for high-value loans, to take advantage of such educational measures.
If you’re considering applying for a personal loan, let us help you:
- Assess your borrowing capacity
- Understand the costs and risks
- Guide you through loan applications under the new rules
👉 Contact Leap Concept today to ensure you’re prepared before applying for a large personal finance facility.
