The application for and attainment of a personal loan, also known as a pinjaman peribadi koperasi, has been noted as a very common occurrence among government employees in Malaysia. The rumor states that individuals with a Malay background have great difficulty in managing personal finances and in this instance it is true. Known for their borrowing nature, the Malay culture is one of the most financially undisciplined societies in the world and is generally dependent on the government to ease financial difficulties. This article will provide information about the personal loans acquired, also known as pinjaman peribadi, and how these loans influence contemporary Malay society.
Focusing On The Now
As is mentioned above, the Malaysian culture has been noted as having individuals who lack focus and attention for their future aspirations. This means that the majority of Malaysian inhabitants focus on the present moment, including government officials. As one can imagine, making the current moment a focal point can lead to an inability to control certain aspects of one’s life, such as financial matters. In order to overcome this type of difficulties, the Malay government provides individuals with beneficial loans; however, while these loans are beneficial to the client they do present with very high interest rates.
The Installment Scheme
Many may imagine that this is the ideal situation – borrow money from the government now and deal with repayments later. The most common type of personal loan for government staff in Malaysia is the installment scheme which proposes the aforementioned procedure. Unfortunately, many individuals are not able to pay off the repayment amounts and may fall behind in reparations. If this were to happen, the individual in question would be blacklisted which will have various negative consequences.
The Credit Card Scheme
Another popular personal loan option among Malay government staff is that of the credit card. This scheme is better known among the global economy and can be deemed one of the traditional personal loan options. Unfortunately, among many people worldwide, the credit card is often abused and can lead to greater debt than initially being experienced. Once again, if a person in Malaysia is unable to repay credit card debts they will suffer blacklisting and may become bankrupt. It should be noted that the default amount and interest rates within this scheme are higher than the installment scheme option.
The Money Lender
In recent years, private and third party money lenders have grown in popularity. This is often due to the fact that many of these agencies do not take bank credit into account and are willing to lend blacklisted individuals certain amounts. Generally, this option is the last solution considered as some money lenders, also known as pinjaman berlesen, are known to become violent towards those who are unable to make reparations.
As is mentioned above, the Malaysian culture chooses to focus on the present instead of considering the future and this can lead to an increased debt. The banks do offer personal loan schemes to assist individuals in this situation but, as has been mentioned above, those who are unable to repay the loan will be blacklisted. This means that the individual is no longer able to obtain personal loans from any banks in the country. In this instance the money lender will be contacted; however, if no reparations can be made the individual may be physically injured and/or land up in further debt.
Final Words On The Matter
Living in financially unsound countries can be difficult for many individuals, particularly with living expenses increasing daily. By using this article one should be able to determine which scheme is best for personal needs and why reparations are so important.