Key Takeways
- The AKPK interest rate through the DMP provides a structured and more manageable approach for borrowers in Malaysia to handle their debts.
- Applicants must meet the eligibility criteria to enrol in AKPK’s Debt Management Programme.
- Successfully managing and paying off your debts through AKPK’s DMP can help improve your credit score over time.
- AKPK’s lower interest rate in the DMP provides benefits, such as affordable repayment amounts, access to AKPK’s services and quicker debt repayment.
Understanding the AKPK interest rate is crucial for effective debt management and financial planning in Malaysia.
The Credit Counselling and Debt Management Agency, commonly known as AKPK, plays a pivotal role in offering financial advice and services.
This article aims to provide an in-depth exploration of the AKPK interest rate to shed light on how it impacts individual borrowers.
What are AKPK’s Services?
Agensi Kaunseling dan Pengurusan Kredit (AKPK), or the Credit Counseling and Debt Management Agency, is crucial in promoting financial literacy and offering support services in Malaysia.
Here is an overview of the services provided by AKPK:
1. Financial Education
AKPK’s financial education modules are designed to cater to a wide range of individuals, including tertiary students, working professionals, individuals starting families, and retirees.
The modules cover various aspects of financial literacy, tailored to the specific needs and challenges faced by each group.
This comprehensive approach ensures that financial literacy is accessible and relevant to everyone, regardless of their phase in life.
2. Financial Advisory
AKPK provides customised financial advisory services to both individuals and Small and Medium Enterprises (SMEs).
The service scope includes assistance in financial planning, cash flow management, understanding various financial products, and developing strategies for saving money.
3. Debt Management
AKPK’s Debt Management Programme (DMP) is specifically designed for individuals facing unmanageable debt.
Under the DMP, AKPK would work with clients to assess their financial situation and create a manageable repayment plan.
The DMP aims to help individuals regain financial stability, avoid bankruptcy, and ultimately achieve debt freedom.
Read More: What Are the Best Alternatives to Personal Loans in Malaysia
What is the Eligibility Criteria for AKPK’s Debt Management Programme
AKPK’s DMP is a vital tool for individuals seeking to manage and overcome their debt challenges.
However, not everyone automatically qualifies for this programme. Here’s a detailed look at the eligibility requirements:
- The applicant has a positive net income following monthly deductions.
- The debt is less than RM5 million.
- The applicant is not involved in any advanced legal action.
- The applicant has not declared bankruptcy.
How Does the AKPK Interest Rate Affect Borrowers in Malaysia
The AKPK interest rate under the Debt Management Programme (DMP) significantly affects borrowers in Malaysia in several key ways:
1. Personalised Debt Management Plan
AKPK will develop a personalised debt management plan for each borrower.
This plan takes into account the individual’s financial situation, ensuring that the debt management strategy is realistic and sustainable for them.
2. Negotiation with Banks
AKPK acts on behalf of the borrower to negotiate with banking institutions.
The goal is to establish an affordable monthly repayment plan based on the borrower’s financial circumstances.
This negotiation often leads to a reduction in the overall interest rates on the debts.
3. Consolidation of Debts
The DMP effectively consolidates multiple debts into a single debt with a lower AKPK interest rate.
This consolidation simplifies financial management for the borrower, as it reduces the complexity of handling multiple due dates, payments, and varying interest rates.
4. Single Monthly Payment
Borrowers make a single monthly payment to AKPK, which then distributes the payment to the banks involved.
This streamlined process makes it easier for borrowers to make consistent and timely payments to creditors, which is critical for maintaining a good credit score.
Read More: How to Settle Personal Loan Faster in Malaysia
What are the Advantages of the Lower AKPK Interest Rate in DMP
The lower AKPK interest rate in the DMP offers several significant advantages to borrowers in Malaysia:
1. Reasonable Payment Amount
The monthly repayment amount under the DMP is carefully calculated based on the borrower’s cash flow.
This personalised approach ensures that the repayment amount is affordable, reducing the financial burden on the borrower and improving the borrower’s overall well-being.
2. Free AKPK Services
One of the most beneficial aspects of AKPK’s services, including education modules, advisory services, and the DMP, is that they are offered free of charge.
As such, borrowers can access the advice and help they need to manage their debts without exacerbating their financial situation with additional costs.
3. Faster Debt Repayment
AKPK’s interest rates are generally lower compared to the high interest rates typically associated with multiple debts, such as credit card debts and unsecured loans.
The lower interest rates mean that borrowers will pay less in interest over the lifetime of their loans.
This can significantly accelerate the debt repayment process, potentially leading to an early settlement of the DMP.
How Bluebricks Can Help You
The reduced AKPK interest rate provided under the DMP can significantly impact your debt management strategy, offering immediate relief and long-term financial stability.
However, it’s essential to note the impact of enrolling in AKPK:
- Prohibited from applying for new credit facilities (credit cards, personal loans, home loans, car loans)
- Potential impact on registering a new company account due to bank caution
- Potential influence on employment status due to company policies
- Possible implications on eligibility for corporate roles or opportunities like promotions or receiving new company shares.
By addressing these considerations, Bluebricks can effectively assist you in navigating your financial journey post-DMP completion.
With years of experience as a bank loan and debt consolidation agency, Bluebricks offers a plethora of financial services, including:
- Personal loan services
- SME loan services
- Mortgage loan services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
Reliable Loan Consultancy Services
Whether you are just starting to manage your finances or are in the midst of a financial crisis, our loan consultants can help analyse and guide you to the most suitable financial product.
Moreover, our team’s recommendations will be based on several crucial aspects:
- The specific loan amount you require.
- The urgency with which the loan amount is needed.
- Whether you or your parents own a property that has been held for over ten years.
- Your income level.
- Your CTOS score (such as your credit score and credit history).
AKPK Interest Rate – FAQs
As part of our helpful guide, we will answer some of the commonly asked questions related to the AKPK interest rate and the Debt Management Programme.
We hope this will highlight AKPK’s DMP as a beneficial tool for those struggling with debt in Malaysia.
No, AKPK does not charge an interest rate for its services.
The agency provides its financial counselling and debt management services for free as part of its mission to promote financial wellness among Malaysians.
AKPK does not charge any fees for participating in its Debt Management Programme. The service is offered free of charge to help individuals effectively manage their debts.
The DMP by AKPK is designed for individuals who have the capacity to repay their debts but need assistance in restructuring their payment terms.
It is unsuitable for those who cannot repay or are facing legal action. AKPK counsellors assess each individual’s financial situation to determine the best course of action.
Participation in AKPK’s DMP may be noted in your credit report, and it may impact your credit score.
However, successfully completing the programme and paying off your debts can positively influence your credit standing in the long term.
