Saturday, January 28, 2023

Netizens criticize TnG’s GOpinjam for high interest rates and potentially causing loan trap

Social NewsNetizens criticize TnG's GOpinjam for high interest rates and potentially causing loan...

Ever since the Covid-19 pandemic started in the country, many people have been struggling financially. Many had used up their savings and had sought to dig into their EPF accounts to continue living with that.

Recently, Touch ‘n Go (TnG) has unveiled its latest digital loan scheme, known as GOpinjam. The feature is a micro-lending scheme that is being delivered directly via the TnG eWallet app.

This new feature can educate first-time borrowers on debt management and at the same time, assist Malaysians in obtaining appropriate finance.

However, its launch has met with several criticisms from the public. On Twitter, netizens pointed out the high interest rates from this new loan scheme and said it is unncessary.

Accordingly, GOpinjam offers personal loans from as low as RM100 to a maximum of RM10,000 and customers can choose from a repayment period of one week to one year. The interest rates ranged from 8% to 36% based on the loan amount and repayment period.

Many also compared the GOpinjam interest rates to PTPTN’s, which only has a 1% interest rate.

As such, many said GOpinjam is way to dangerous for those who struggles financially and warned others to not fall for this loan trap.

Despite TnG’s intention to help provide finance to the B40 category, many questioned how GOpinjam can help them get back on track if they are still struggling financially and can’t afford the repayment.

Many also asked whether the government is normalising loans and encouraging its citizens to pick up loans to cope with the high living cost in Malaysia.

For more information on the GOpinjam scheme, you can check the FAQ here.

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