Kuala Lumpur: The standardisation of documents for housing loan agreements by Bank Negara Malaysia (BNM) creates a protection mechanism for borrowers due to the problem caused by a lack of understanding on the agreement, said the Federation of Malaysian Consumers' Association (Fomca).
Fomca secretary-general Datuk Paul Selvaraj said the use of language that was easily understood in the document could improve understanding by the borrowers compared to the ‘legal jargon' used.
"Usually, our consumers seldom read the agreement because the language is complex besides the thickness of the agreement which is like a dictionary and even if it is read, we seldom understand the contents.
"Even when there are terms that we understand, it is difficult to ask the bank concerned to amend it (term). When they are standardised, it will give basic protection to the consumers as an assurance that our interests are protected," he told Bernama.
On Friday, the BNM announced that all banking institutions were required to adopt a standard documentation for conventional housing loan and financing agreements for a principal loan of RM500,000 and below effective on Tuesday.
Meanwhile in KUALA PILAH, the Rural and Regional Development Ministry has allocated RM226 million next year for the management of 231 GiatMara centres nationwide and its headquarters.
Deputy Minister Datuk Hasan Malek said the ministry also allocated RM10 million next year for the incubator programme to turn GiatMara graduates into entrepreneurs.
"Negeri Sembilan has been allocated RM390,000 for the incubator programme next year where 60 participants will receive cheques for RM6,500 each. Kuala Pilah constituency has been allocated RM117,000," he told reporters after the graduation ceremony of Negeri Sembilan GiatMara yesterday.
Hasan who is also Member of Parliament for Kuala Pilah hopes that the incubator programme would help participants start business.
He encouraged them to try to develop their business adding Mara was always willing to help by providing assistance including loans.
GiatMara incubator programme is an entrepreneur training plan which include aid such as starting capital, premises, equipment, guidance and exposure to business and entrepreneurship.
--Courtesy of New Sabah Times