Bank Negara’s lending guideline is a blessing in disguise

  • Business Premium
  • Saturday, 03 Mar 2012

ENVIRONMENTALISTS and green champions must be applauding the lower number of cars that have been sold since Bank Negara's latest directive to banks to disburse the quantum of household loan based on a borrower's net income instead of gross income.

Since Jan 1, banks have to use net income instead of gross income to calculate the debt service ratio for loans. The guideline covers housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.

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