PETALING JAYA: Touch ‘n Go (TNG) has sought to allay concerns over its newly launched micro loan scheme, saying it adheres to Bank Negara Malaysia’s (BNM) responsible lending guidelines.
This comes after former prime minister Najib Razak questioned how the interest rate of the scheme, known as GOpinjam, could run as high as 36% per annum.
“TNG would like to clarify that GOpinjam and its underlying product (e-Zi Tunai by CIMB Bank Bhd) are fully regulated with the right codes of conduct in place,” it said in a statement to FMT.
“All applicants will also be subject to bureau credit checks to ensure that loans are only provided to those who have the means to repay.”
The company said the scheme targeted a segment of the market that was usually underserved, namely individual borrowers who require lower credit amounts for shorter periods of time.
It maintained that all terms and conditions for loans would be provided clearly and upfront to applicants, adding that this was “typical of good financial services practices”.
“We also ensure that returning customers with good repayment histories will enjoy lower interest rates in the future,” it said.
TNG launched the GOpinjam feature within its e-Wallet platform last week. Jointly developed with CIMB, 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 said.
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.
Yesterday, Najib urged the finance ministry to explain why the interest rate for the GOpinjam scheme could amount to 36% a year, saying this would only be a financial burden to users.