Credit type services available only for civil servants,employees working in government organizations from the cooperatives and foundations are known as Co-operative loans. These loans are available for government employees, local municipal councils and some selected government linked bodies. The credit cooperatives register with the cooperative commission in Malaysia under the act of 1993 Cooperative Act.
Things that you should know about Koperasi loan in Malaysia
- Funding
Where do the co-operative banks raise the fund from? There are many popular banks in Malaysia. These banks play an important role in funding the co-operative banks. Some of the popular banks that are involved in funding the cooperative banks are CimbKoputri, Rhb Islamic Idsb, Public Islamic Bank’s Bae Ag Personal Financing-I and many other banks.
- Who can apply for Koperasiloan?
Koperasi loan is applicable only for employees who are working for a government organization, selected staff members who are working for federal and state organization, municipal workers, government linked agencies and statutory bodies.
The co-operative loan has a list of eligible employers which includes members of PKNS, SYABAS, TNB, Public universities and other government organizations. The loan candidate should be working for the government organization for at least 6 months. The age limit is between 21 years to 58 years old. The minimum salary of the employer should be about RM 1500 per month. Non- government employers are not eligible for the co-operative loan.
- Credit Criteria
The Koperasiloan is less strict as compared to other conventional bank loans. At Koperasia lower credit approval criteria is required has the amount is directly deducted from the borrower’s salary by Biro Perkhindmatan ANGKASA or by Accountant General’s Department. Loan applicants with high commitments can also be considered by the Koperasiloan providers.
- Repayment process
The automatic salary deduction scheme is used by National Cooperative movement in Malaysia commonly known as ANGKASA. Koperasiloan also uses deduction by Account General’s Department AG. The loan installment and other deductions should not exceed a limit of 60% as per the rule of Public Service Department.
- Interest rates
The interest loans are lower as compared to other banks in Malaysia. The loan rate can be as low as 3.88% per annum. You need to also consider the potential loan payout of the loan. You can avail a loan up to RM 250,000. Before applying for the loan, the loan applicant needs to look at the monthly repayment amount.
