KUALA LUMPUR, Oct 1 — Malaysians seeking personal loans over RM100,000 will be required to attend a mandatory financial education module under a new Bank Negara Malaysia (BNM) policy effective from 2027.
In its Policy Document on Personal Financing, the central bank said borrowers must complete the session — to be conducted by either their lender or the Credit Counselling and Debt Management Agency (AKPK) — which is designed to help them make more informed financial decisions.
Additionally, lenders will be empowered to recommend that high-risk customers complete the module before being approved for any new personal financing product, regardless of the amount.
The new policy also introduces stricter disclosure requirements, obliging lenders to inform borrowers of the effective interest rate as part of broader efforts to promote responsible borrowing.
BNM said the new measures were necessary to counter lending practices that are contributing to unsustainable household debt.
The central bank noted that intense competition among lenders has led to products that appear affordable but can result in excessive debt and significant financial hardship for consumers.
The new rules, which will apply to all licensed banks, Islamic banks, and development financial institutions, are aimed at strengthening consumer safeguards beyond existing suitability and affordability assessments.
