Debt, or in its formal language loans, is one of the financial institutions that is no stranger to every working person. Loans whether in the form of car or housing loans have become a must for those who want to start their journey towards adulthood.
For some of us who are lucky enough to have a beautiful CTOS score, be rewarded with uninterrupted monthly sustenance, even when the crisis is still receiving annual bonuses, the ability to get personal loans from reputable lending institutions at the lowest interest rates has almost become commonplace in among those sitting on the M40 and T20 stairs.
You can find a list of licensed money lending companies here if you want. But please don’t apply for a personal loan with an unlicensed person, it’s not worth it.WHAT ABOUT THE B40 GROUP? OR THE M40 WHICH IS ALREADY SHORT OF REVENUE DUE TO THE EFFECTS OF THE PANDEMIC?
For those who have not been categorized as desperate, of course, the choice will be taken to ensure enough rice in the kitchen, car debt this month paid and milk for drinking children is available, personal loans from credit institutions can be an option.WHAT ABOUT THOSE WHO FALL INTO THE BLACKLIST CATEGORY?
What do you understand when you meet those who are blacklisted? In general, the blacklist mentioned by any party that offers credit loans for motor shops, cars, and its contemporaries means:
“The CCRIS and CTO’s blacklists can be categorized as temporary detention or confinement terms as long as the borrower’s outstanding debts are not settled.”
Due to the misconception of people who think this blacklist is in shape forever, whereas when you are categorized by CCRIS and CTOS as a good debt payer you are no longer blacklisted, then this is what is fed by unlicensed money lending companies or along.
Simple, concise, and fast, along lends not based on credit checks but by charging Maha Jew interest to the desperate.
Who is so desperate to borrow from along? Many, many indeed. For most of us who want money immediately, along with is the answer even though the risks go beyond the logic of thought.
But what are the risks faced by the borrower if making a personal loan from an unlicensed moneylender? According to the Licensed Money Lenders Act 1951 which sets 1.5% per month as loan interest, in reality, these illegal institutions charge interest at will.
According to the rules set for unsecured loans, they (money lending company – PPW) can only charge a maximum interest rate of 18% per annum (pa) while for secured loans the interest rate that can be charged is not more than 12% per annum (pa).
So, what does it feel like to borrow from a long?HOW DOES IT FEEL TO BORROW FROM ALONG?
Undoubtedly borrowing from a long is detrimental. In any case, look for other alternatives, and stay away from the desire to borrow from these unlicensed moneylenders. But, for those who are still about to call the number of the unlicensed moneylender who landed at the TTDI Jaya traffic light just now, do an arbitration taking into account the risks listed before you dial.TEN-THREE
For expert lenders of unlicensed money lending institutions, of course, you are familiar with the term ‘ten-three’. What is meant by ‘ten-three’? Ten three means, for every RM10 borrowed, RM3 will be charged as interest. Not much right? Wrong! With ten-three terms, the amount you borrow will be charged interest of 30% in one month.
If you want RM10,000, the total interest rate to be paid in a month is RM3,000. Interest if the loan repayment period is for 12 months, the total interest to be paid within that period is RM 36,000.
Still, feel worth it? It’s only ten-three. Sometimes it’s ten-four and ten-five.HIDDEN COSTS AND TERMS
If you feel the terms and conditions imposed on licensed financial institutions such as banks and credit loans, imagine the terms imposed by these along.
What if you miss a month of payment? Do you know the penalties that will be imposed? Or what if you die, is your loan guaranteed by this unlicensed financial institution.
Like banks, such institutions impose penalties that are definitely higher than banks, if the interest alone is already 30%, what about the penalties?
What if you want a ‘full settlement’? Dreams come true. Where is there an along who wants a solution immediately if the flowers alone can make the stomach full for a year?BANK CARD/PERSONAL DOCUMENT AS DEPOSIT
Through the story of a colleague who once entered the long loan scene, his bank card was taken by along as a security deposit to ensure continuous payment.
Some will hold identity cards and passports to make sure you don’t run away. Are you willing to mortgage your personal data for money that is not worth it?DEBT UPON DEBT
Ever heard of the concept of ‘Consolidated Loan’? A consolidated loan or consolidated loan is a concept where all your loans are consolidated into one large debt to ensure that you do not lose in terms of different interest payments. This is a form of debt on debt, the taking of new debt to settle old debts.
Along also acted in such a way, when borrowers who were desperate to pay high interest would act to take on other debts to cover existing debts. This is what makes those in debt continue to wallow in endless debt.