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Friday, September 08, 2006

What a Brilliant Idea NOT!


The goons at MARA have devised a clever scheme
to avoid hauling all their loan defaulters to court.

Just pay RM20 monthly and take forever to pay off your study loans that can cost thousands.
It is somewhat similar to the discounts announced recently by the traffic police that have been rescinded by the Cabinet.

I think the following should be done by MARA instead:

 Hire about 1000 of those unemployed graduates to track down the defaulters for a one-year contract. Pay them RM400 monthly allowance plus a finder’s fee of 10% of loan recovered.

 Get a bank to take over the loans at a discount like 10 to 15%. The bank will then get the loan defaulters to schedule payments.

 Ask MPs to change the laws so those loans given by the government can be deducted from the EPF account.

This RM20 monthly deduction shows the people in MARA have no idea how to proceed with loan recovery except publish names in the papers. And that too costs quite a lot. I suspect the advertising costs have been more than the loans recovered.

We can understand that some loan recipients may have trouble finding jobs but they should be made to start repaying their loans from the second month onwards.

The study loan repayment should be their first priority, ahead of car, house loans and family needs.

Any monthly payment scheme should be based on some definite scale as follows:

 Loan repayment term maximum 8 years from start of first job

 Repayment to be 10% of basic pay or RM100 monthly whichever is more.

 Each year the monthly quantum will be raised by RM25 as per clause 2.

 Court action will be taken if default 2 months concurrent or more than 3 times in each year.

photo: http://www.freephoto1.com/photo/photo-money-5.jpg

2 comments:

Anak Merdeka said...

They probably never did anything serious to recover the loans for fear of losing much need votes during election time. Same thing with all talk about rooting out corruption.

Trashed said...

The onus should be on the borrower to pay back and it comes down to integrity (or lack of it).

With the advent of a fledgling credit reporting system, MARA should immediately lodge the names of all the defaulters with the 2 agencies.