‘Deeper in debt’

PETALING JAYA: Money lenders claiming to offer loans to "blacklisted" individuals are most likely loan sharks who will land the borrower in deep trouble.
Malaysia Punjabi Licensed Money Lenders Association (PLMA) president Beant Singh said licensed money lenders do the same checks as banks before approving loans.
"We check their (loan applicant) annual and monthly income, outstanding debts, payment record, and their credit record before approving loans," Beant told theSun.
He said loan sharks specifically target people who could not get loans through legitimate means.
However, Beant warned that these loans come with extremely high interest rates that are almost impossible to pay off due to the borrower's already dire financial state, and loan sharks often resort to violence and intimidation to recover money.
He said one way to identify legitimate advertisements by licensed money lenders is to look for the permit number.
This is because licensed money lenders are governed by the Urban Well-being, Housing, and Local Government Ministry (KPKT) and have to apply for permits if they wish to advertise.
Furthermore, Beant said, licensed money lenders are required by the Moneylenders Act to visibly display their licences on their premises.
The Association of Banks in Malaysia (ABM) executive director Chuah Mei Lin advised members of the public to be cautious and verify if a moneylender is licensed before taking loans.
As for those who could not get loans from legitimate sources, Chuah said, they should start taking steps to improve their financial standing before applying for another loan.
Chuah said the public should approach multiple banks for loans as each bank and money lender has its own set of criteria for granting loans.
Meanwhile, a Bank Negara (BNM) media relations officer told theSun that there is no such thing as a "blacklist".
She said BNM instead keeps Central Credit Reference Information System (CCRIS) that keeps track of the financial performance of individuals with loans or credit cards.
Banks and moneylenders will then refer to the CCRIS or other credit reporting agencies for an applicant's loan repayment and credit history.
"To approve or to reject loan applications is up to the lender based on the person's credit rating," the source said.