How does Mara differentiate between genuine inability to pay and deliberate refusal?

Question

Accepted Answer

Mara Differentiates Loan Repayment Issues Based on Borrower Conduct

Majlis Amanah Rakyat (Mara) distinguishes between borrowers who are genuinely unable to repay their loans due to unforeseen circumstances and those who deliberately refuse to meet their financial obligations. This differentiation guides Mara's approach to debt recovery, aiming to be both firm and fair in managing public funds entrusted to the institution. The core principle is that loan contracts require repayment, and Mara will engage with borrowers facing genuine difficulties, while taking firmer action against those who intentionally evade their responsibilities.
Differentiating Borrower Circumstances

Mara categorises loan repayment issues into two main groups: genuine inability to pay and deliberate refusal. The former encompasses situations where borrowers face extenuating circumstances that impede their capacity to repay, such as job loss or medical emergencies. In contrast, deliberate refusal implies a conscious decision by the borrower to prioritise other expenditures or to avoid contact, effectively "procrastinating" on their loan commitments. This distinction is crucial for determining the appropriate course of action.
Negotiation and Restructuring for Genuine Hardship

For borrowers experiencing genuine difficulties, Mara adopts a flexible approach centered on negotiation and restructuring of payment plans. The institution encourages individuals facing challenges in settling their debts to come forward and engage in discussions. This process allows for the arrangement of rescheduled or restructured payment terms that align with the borrower's current financial situation, ensuring that repayment remains achievable without resorting to immediate punitive measures.
Legal Action as a Last Resort

Legal action and court proceedings are reserved as a final measure for individuals who deliberately refuse to repay their loans. This step is taken only after other avenues, including negotiation and rescheduling, have been exhausted or proven ineffective. The objective of pursuing legal recourse is to recover disbursed public funds, which are then reinvested to benefit other aspiring borrowers, thereby upholding the integrity and sustainability of Mara's loan programmes.

Reading history

Hide →

This history is cleared when the page is closed.

How does Mara differentiate between genuine inability to pay and deliberate refusal?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends