Thursday, July 10, 2008
Banks Agree to Restructure Housing Loan Payments
Really??? Read here http://thestar.com.my/news/story.asp?file=/2008/7/9/nation/20080709174150&sec=nation
I do not believe it. I took a staff loan when I was with this biggest bank in Malaysia. The interest rate for staff housing loan was 3.5% for 21 years. After I resigned end of last year, they charged my interest of 10.75% with the same loan tenure i.e. 21 years. I wrote to them requesting them to restructure my loan by either reduce the interest rate or prolong the tenure to 30 years. I knwo it was a term in my loan agreement that ahould I resigned from the Bank, the interest rate will be BLR+4%. Yes, I know they are following the terms and conditions stipulated in the loan agreement but what I asked for was for them to use their discretion to reduce it to the normal rate enjoyed by normal borrowers, which they could do if they want to.
Unfortunately, my application to restructure my loan was declined without giving any reason but I was also told that they may consder my application in the future. That was in December last year.
2 weeks ago, I made an inquiry about my loan and the person who assisted my was surprised to learn that my interest rate is so high and that she would do something about it. She told me that she would brought up my case to the management for their consideration. Unfortunatey, for the second time, the Bank declined my request for no reason.
And now Nor Mohamad Yaacop said that Banks have agreed to restructure housing loans. Should I believe it? Well, I do not think that Nor Mohamad Yaakop has the power to force the Banks to restructure the housing loans. The best thing he can do is to give them a piece of advice. It is up to the Bank to decide. The Banks' agreement means nothing.