PETALING JAYA: Former prime minister Najib Razak has urged the finance ministry to explain the interest rate of Touch ‘n Go Group’s (TNG) newly launched micro loan scheme, with interest rates said to run as high as 36% per annum.
He said if the interest rates were as high as that, it would only burden users financially.
“I hope the finance ministry can monitor and explain why the interest rate for the GOpinjam micro loan scheme with CIMB Bank can amount to 36% per annum,” he said on Facebook.
Watch the video here.
Najib questioned if the information provided by TNG was incorrect.
Last week, TNG launched the GOpinjam feature within its e-Wallet platform. Jointly developed with CIMB Bank Bhd, it offers personal loans from as low as RM100 to as high as RM10,000.
The repayment period can range from one week to one year, with no hidden fees or early settlement charges, TNG claims.
According to its website, the interest rates vary from 8% to 36% per annum, depending on the amount and duration of the loan approved by the bank.
FMT has contacted TNG and CIMB Bank for comment.