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The Star : Interest rates rise proposed PDF Print E-mail
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Friday, 11 September 2009 16:08

 

KUALA LUMPUR: Licensed moneylenders have called for an increase in interest rates, saying that the current 18% is making it hard for them to make a profit.�

Malaysian Licensed Moneylenders Association founder president R.S. Veeraseelan said he rates had not changed since the Moneylending Act came into being in 1951.

�I hope the ministries involved will conduct a study on how best they can help us. We will not dictate the percentage, this is up to the Government to decide.�

�This is not only to make profit, but it is to cater to the high risk group (bad debtors) as well. We (too) need some form of security,� he told a press conference called by MCA Public Complaints and Services Department head Datuk Michael Chong. �

He said the 18% rate now was still much lower than rates being demanded by Ah Longs, which could be up to 40% per month. �

Veeraseelan said their business carried risks as three out of 10 borrowers failed to pay back.�

Chong expressed concern about families of borrowers who were harassed by Ah Longs.�

He asked the association to check if any of their members were guilty of such action. �

Veeraseelan said the association viewed the harassment issue seriously.�

�We believe our members do not resort to such tactics. Nevertheless, we will check. If they have, then necessary action will be taken,� he said.�

There are about 3,200 licensed money-lending companies in the peninsular