What is NPL ( non-performing loan ) .. ??

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asked on Nov 27, 2008 at 22:05
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To all dearest ,

I just want to know what is NPL , (non-performing loan ) ..??

What will happen to a person if under NPL , e.g.
- loan
- credit card
- passport
- status ( which is blacklisted or bankruptcy )

i have ask the bank , but they cannot explain to me ,
they only ask me to pay , ( same to force , but using the word "PLEASE" )

so , i hope some one could reply me about the point above , 

Thank you.
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3 Answers
answered on Nov 28, 2008 at 00:56
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Dear Beer

A non-performing loan (NPL) is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms.

“A loan is nonperforming when payments of interest and principal are past due by 90 days or more, or at least 90 days of interest payments have been capitalized, refinanced or delayed by agreement, or payments are less than 90 days overdue, but there are other good reasons to doubt that payments will be made in full” (IMF)

Non-performing loan -- a loan that is not earning income and: (1) full payment of principal and interest is no longer anticipated, (2) principal or interest is 90 days or more delinquent, or (3) the maturity date has passed and payment in full has not been made.

If your loan is just under/about to reach NPL, the bank normally shall issue letters of demand and if you still do not pay after 3 or 5 months, the bank shall summon you to court for 1st mention - normally to ask you whether you admit to the debt claimed by the bank. If you admit, a consent judgement is entered whereby you then renegotiate with your bank to settle the debt (loan/credit cards). If you still do not pay, among other actions, the bank shall apply to seize your assets/properties or WSS (writ of seizure & sales) or even blacklist you. Remember one thing, those bank's debt collectors/agencies have no right to threaten and beat you up.  If they do threaten, do NOT hesitate to report them to the police/media/MCA Complaint Bureau and even complain to the Bank Negara. Banks will be afraid to have their ethics and professional public reputation tarnished!

Your passport normally is impounded when you are issued a bankruptcy order where all your bank accounts, assets and properties will be frozen. You cannot open a bank account without permission from the Insolvency Dept. You can work as an employee but cannot transact or do business. You also would not be able to renew your own motor vehicle road tax.
The good news is that our EPF, Pension, SOSCO and Insurance money are protected - meaning our creditors cannot seize them.

On the other hand, a person blacklisted can have everything except finding it impossible to get loan or finance or credit card. A blacklist can still open bank accounts but be careful not to open accounts in your creditor bank(s) where you are in debt otherwise they shall seize your money there.
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answered on Dec 2, 2008 at 14:54
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Thank you for the info ,

by the way i want to know if I was under NPL ,
does it I still can go to AKPK ..?

I understand that if a bankruptcy can open the saving account ,
but is it the bank still can take the money from there ..?

thank you for you all can reply to me again....
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answered on Dec 2, 2008 at 15:43
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Question: By the way i want to know if I was under NPL, does it I still can go to AKPK ..?

Answer: Yes, you can go to the AKPK. Even people having debts with
loan sharks "Ah Longs" can still go to the AKPK for advicRE:What is NPL ( non-performing loan ) .. ??
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