Banks to use standardised key provisions for housing loan agreements regardless of loan amount — ABM

• ABM said it first introduced in 2013 the standardised template for description of key terms and conditions in respect of housing loan or home financing agreements for individuals involving a principal sum of RM500,000 and below.

KUALA LUMPUR (March 30): The Association of Banks in Malaysia (ABM) said its bank members will expand the usage of standardised key provisions for housing loan agreements to individuals regardless of the loan amount by April 1.

ABM membership is made up of 26 commercial banks operating in Malaysia, including Maybank, CIMB Bank and Public Bank. 

ABM said it first introduced in 2013 the standardised template for description of key terms and conditions in respect of housing loan or home financing agreements for individuals involving a principal sum of RM500,000 and below.

“This template has since been used by ABM member banks as part of the housing loan agreements for stipulated residential property loans to individuals,” the association said in a statement on Thursday (March 30). 

“Over the years, this template has been revised to reflect various changes in regulations, with the most recent changes made in 2021 to simplify the language used in the said document.”

ABM said the banks’ current initiative to expand the template is intended to enhance the quality of service delivery. 

Also, banks hope to facilitate borrowers’ understanding and comparability of the key terms and conditions of the housing loan agreements using simplified language, including the responsibilities and obligations of borrowers and the banks under such agreements.

“ABM member banks are committed to uphold fair consumer outcomes in line with the requirements outlined in the policy document on fair treatment of financial consumers and other relevant policies issued by the regulator,” it said.