KUALA LUMPUR: Personal loans cause 49.22 per cent of bankruptcies in the country, said Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
She said personal loans include secured or unsecured loans from banking institutions, personal loans from money lenders other than banking institutions and friendly loans from individuals.
She said bankruptcies involving business loans comprised 17.05 per cent, housing loans at 8.28 per cent and credit card debt at 6.35 per cent.
She said this when winding up the debate on the Insolvency (Amendment) Bill 2023 before it was passed by the Dewan Rakyat today after it was debated by 18 Members of Parliament from the government and the opposition.
Earlier, during the debate session, Khoo Poay Tiong (PH-Kota Melaka) wanted an explanation of the types of personal loans which have caused many people to go bankrupt and suggested that the payment rate of five to seven per cent to the Malaysian Department of Insolvency (MdI) be reviewed. – BERNAMA