Awang Adek: Tighter loan rules meant to gauge, not hinder

KUALA LUMPUR, Oct 18 — The loan procedures being implemented by financial institutions is aimed at making a fair evaluation and not complicate financing for local entrepreneurs.

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/awang-adek-tighter-loan-rules-meant-to-gauge-not-hinder/
Published: October 19, 2012

Deputy Finance Minister Datuk Dr Awang Adek Hussin said the procedure took into account credit management practice to determine if the applicant was eligible to receive financing based on the viability of the project as well as the repayment capability.

“The procedure used is clearly stated in the customer charter of the financial institutions alongside the list of documents to be verified for each application, including the time taken to process it.
“Hence, the applicant is asked to ensure that all core documents are complete, so that the process of evaluation goes smoothly,” he said in response to a question from Datuk Bung Moktar Radin (BN-Kinabatangan) in the Dewan Rakyat here today.

Bung Moktar had wanted to know the loan procedure of financial institutions such as SME Bank, the Malaysian Technology Development Corporation (MTDC) and Bank Pembangunan, which are seen as complicating assistance to local entrepreneurs.

Taking the MTDC as an example, Awang Adek said its funding procedure was very brief towards assisting customers, apart from having in place flexible preconditions, compared to commercial banks.

Answering a supplementary question from the same MP on the steps taken by the government to ensure local entrepreneurs were not left in the lurch by the procedures of the financial institutions, Awang Adek said a complaint ought to be lodged for appropriate action to be taken.

“If there is unsatisfactory service, bribery, there needs to be follow up, so that action can be taken or an investigation instituted,” he added.

To a supplementary question from Datuk Abdul Rahman Dahlan (BN-Kota Belud) on whether the government had plans for a different approach to making the loan process easier for entrepreneurs in Sabah and Sarawak, Awang Adek said the matter would be brought to the attention of those concerned. — Bernama