KOTA BARU: Majlis Amanah Rakyat (Mara) has identified 42,000 borrowers who have failed to repay their loans, with no payments made in the past five years.
These borrowers are classified into three categories: education loans, business loans, and rental premises.
Rural Capital Berhad (RCB) chairman Noor Nariri Mohamed Noor said 50 per cent of the delinquent borrowers are from the education loan category.
RCB is a Mara subsidiary responsible for collecting Mara loan repayments.
He said out of 124,000 MARA borrowers, over 34 per cent (42,000) have not made any payments in the last five years.
"We have identified various reasons for their failure to repay, including not securing employment for education loan borrowers.
"As for business and premises loans, some claim their businesses are struggling, while others appear to be deliberately avoiding repayment," he said.
He further explained that RCB is now working to ensure that all borrowers settle their outstanding loans.
"As for repayment methods, we will contact borrowers to understand the reasons for their non-payment.
"We will also offer tailored payment packages based on their financial capability, including deductions through the Employees Provident Fund (EPF).
"Our approach to ensuring repayment is not through force, but rather persuasion. However, if borrowers continue to ignore their obligations without valid reasons, we will take legal action," he added.
In nearly 11 years, RCB has successfully collected RM3 billion in loan repayments from borrowers across all three categories.
"The highest collections have been from education financing, for both local and international students. This year, we aim to collect RM280 million from student loans, RM20 million from business loans, and RM2 million from rental premises under Mara.
"We aim to collect RM300 million annually, and we will work hard to achieve this target," he said.
Noor Hariri urged borrowers to settle their outstanding loans, as many others are waiting for financial assistance from Mara.
"We are working hard to collect repayments because we want to benefit other students and borrowers," he said.
When asked if many celebrities had taken out loans from Mara, Noor Hariri said the number was small.
"They (celebrities) have made their repayments on time," he said.