PETALING JAYA: Proton car dealers have welcomed Bank Negara Malaysia's efforts to meet with banks to clarify its new guidelines for borrowers.
Proton Edar Dealers Association Malaysia (Peda) president Armin Baniaz Pahamin said the meeting on Friday followed concerns expressed that many banks were “overzealous” in interpreting the guidelines and had asked for more documentation.
As a result, sales have been “severely damaged” with only 30% of applicants able to secure financing for new Proton cars last month, said Armin.
“We support the guidelines but not the implementation by banks, especially the interpretation of affordability,” he said yesterday.
Since Jan 1, banks have put in place tighter guidelines for consumer loans, calculating loans based on net income rather than gross income. The maximum tenure for car loans is now capped at nine years.
On Wednesday, it was reported that the income of more than 4,500 sales advisers employed by the Proton dealers' network has been badly impacted.
It was claimed that they were unable to earn commission from sales after customers' loan applications were rejected due to the stringent requirements.
Bank Negara had met with industry players on Friday and assured them that the guidelines would not hamper access to financing.
“Bank Negara has written to financial institutions to ensure that consumers who have the ability and capacity to repay should continue to have access to such financing,” it said in a statement.
“While there have been some reduction in the total number of vehicle financing applications received between December 2011 and last month, due in part to the shorter working month, the approval rate for vehicle financing has remained stable at about 54% for January,” it noted.
In response, Armin said although the approval rate was 54% for vehicle financing last month, a substantial number of loan applications were not accepted for processing and this was not added to the loan submission statistics.
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