Local banks remain supportive of automotive sector – ABM

KUALA LUMPUR: Commercial banks in Malaysia remain supportive of the automotive sector as evidenced by the healthy overall approval rates of 70 per cent for the purchase of cars from January to November 2017, the Association of Banks in Malaysia (ABM) said.

It said banks would continue to provide financing, including hire purchase loans, to eligible consumers based on their suitability and affordability assessment.

“This is important to ensure that consumers are not unduly burdened by excessive debt,” it said in a statement yesterday.

The statement was issued in response to a recent article published by a local financial daily titled “Perodua, Proton to be hit most by lending guidelines”.

ABM said the common reasons for the rejection of car loans would include, but not limited to, history of credit default, insufficient income evidence, uncertain payment ability and low net disposable income.

“It is worth noting that a healthy financial position will be advantageous when applying for loans,” it said.

The association said car loan applications received by its member banks were assessed in accordance to existing guidelines and the respective bank’s internal procedures.

“These would include credit evaluation assessments taking into consideration the applicant’s income as well as existing borrowing, to determine his/her capability to service the loan,” it said, adding borrowers should have sufficient financial buffers in case they were faced with unexpected adverse events.

Therefore, ABM said consumers were advised to ensure that proper and complete documentation was provided to the bank when applying for financing.

Members of the public can also check their credit status for free via eCCRIS, a secure online platform for them to access their own Central Credit Reference Information System (CCRIS) report anytime at their convenience after registering for the same.

“The report will show the financing and repayment history of a borrower with participating institutions over the past 12 months,” it said, adding the link to eCCRIS is https://eccris.bnm.gov.my. — Bernama