SHAH ALAM: More than a third of Indians who took micro-credit loans from the Government have failed to repay them.
MIC president Datuk Seri S. Samy Vellu said this gave Indians a negative image and deprived others from the community of obtaining loans.
“They will be blacklisted and not be able to take loans from other financial institutions,” he said when wrapping up the debate at the party’s 58th general assembly here.
He said 2,020 Indians borrowed RM46mil through the MIC and Yayasan Sosial Strategik (YSS) but 37% of them failed to repay the loans.
YSS is in 12th position among those blacklisted, he said.
“The borrowers smile when getting the loans but show a sour face when asked to pay up,” he added.
Samy Vellu said the MIC faced the same problem with its education loan schemes.
“The borrowers only pay up after we send them a legal notice.”
Loan sharks posed another major problem to Indians, with some of them borrowing money to gamble, he said.
He said the Arumugam Pillai Training Centre, which would open in Nibong Tebal in January, would provide vocational training for youths.
“We must encourage them to attend the courses instead of wasting their time at coffeeshops or riding motorcycles,” he said.