Deep, deep dive
What should I do if my personal loan application gets rejected?
I really need the money, maybe I should go to an Ah Long?
If your loan application gets rejected and you’re tempted to go to an Ah Long for a loan, BEWARE.
When the Ah Long says “Sepuluh Tiga” and “Sepuluh Empat”, what they really mean is that they’ll be charging you 30% or 40% interest per month. And no, that’s not the interest for a year, that’s what they charge every month! So, let’s say you need RM 1,000, it’ll take you 12 months to pay it off, and the Ah Long offers it to you at 30% interest.
Here is what you’ll be paying:
|The total cost to you: RM 3,761
Interest cost: RM 2,761 (yup, you’re paying more than double just to borrow RM 1, 000!)
Your monthly repayments: RM 313
Can you afford RM 313 per month?
Newspaper reports tell us that Ah Longs are willing to be violent and confiscate important documents from you to ensure that you pay off all your debts to them. And with Ah Longs, there’s no such thing as ‘paying off your debts early; they want to make sure they get all their money back, and with interest!