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Starting in 2027, individuals applying for personal loans exceeding RM100,000 will be required to complete a financial education module under a new Bank Negara Malaysia (BNM) policy
In a policy document on personal financing released on 30 September, BNM said the module will be conducted either by the lending bank or the Credit Counselling and Debt Management Agency (AKPK).
The requirement is aimed at helping borrowers make more informed and responsible financial decisions, reported FMT.
"A bank may also encourage financial consumers who are assessed to be of higher risk to attend and complete a financial education module prior to applying for any new personal financing product," BNM stated.
This includes individuals with limited financial literacy or minimal experience in using financial services.
The document also outlines stricter expectations for lenders to disclose effective interest rates to consumers
These measures are part of BNM's broader push for more prudent and responsible lending practices.
According to The Edge, these measures come amid growing competition in Malaysia's personal financing sector, which serves a population of 32 million and is supported by more than three dozen local and foreign banks.
The central bank noted worrying trends in lending practices, citing new financial products that may appear affordable but actually encourage excessive debt accumulation, leaving borrowers vulnerable to financial hardship due to insufficient buffers.
