LOAN sharks (Ah Longs) are raising their interest rates up to 30% as they are facing higher risk from the extensive police operations to wipe out their activities, Nanyang Siang Pau reported yesterday.
The daily said the higher interest rates had not only affected new “customers” but also the current ones.
Citing an example of a “client” who borrowed RM1,000 from a loan shark, the borrower would only get RM750 and had to pay back RM22 a day for 55 days, the daily said.
With the new interest rate, a borrower would now have to pay back RM30 a day, it added.
Quoting a loan shark syndicate that had been operating for over 10 years, the daily said it had increased its interest rate from 13% to 30% and borrowers had to settle their loans in 60 days instead of the 100-day period given previously.
The daily, quoting sources from Selangor and Kuala Lumpur, said syndicates had to increase their rates as they were facing higher risk from stepped-up police operations.
Some of the loan sharks had suspended business in hopes police action would ease.
The daily also reported that the price of live pigs had increased by 30 sen per 100kg in Selangor and 20 sen in other states as of Sept 26.
Quoting Federation of Livestock Farmers Associations of Malaysia Pig Unit chairman Sim Ah Hock, the daily said Selangor was allowed to charge more than other states because of higher transport costs.
“Most of the pigs sold in Selangor are from Penang and Perak,” he said, adding that the latest increase was not linked to the recent increase in the prices of petrol and diesel,” said Sim.
“The adjustment was made because of market demand and supply.”