What are the Drawbacks of Enrolling in the AKPK Programme?
May Not Apply to All Loan Types
It’s essential to note that AKPK Debt Management may not cover all loan types; eligibility typically extends to loans from major banks.
For instance, mortgage or car loans cannot be consolidated into a single AKPK loan payment. This is because AKPK loans typically span 10 years with interest rates between 7-9%.
In comparison, mortgage loans usually have a tenure of up to 35 years with interest rates of 4-5%, while a car loan can extend up to 9 years with a 4 to 6% interest rate.
Withdrawal of Credit Lines
Participants are required to terminate their credit cards, forfeit the ability to utilise bank overdrafts, and are barred from applying for mortgage loans, car loans or credit cards.
These restrictions remain in place until the debt is completely paid off, limiting access to these financial tools.
Borrowers may find themselves vulnerable in times of financial emergencies. Consequently, they may have to resort to borrowing money from others to address urgent needs.
Status in Credit Record
Enrollment in AKPK’s Debt Management Programme is recorded on your CCRIS report, potentially impacting future loan applications.
Banks may exhibit reluctance to offer new loans during and possibly immediately after the programme, considering the participant’s history with debt management.
Strict AKPK Terms
Participants must meet AKPK’s stringent repayment terms and adhere to them rigorously throughout the programme.
Furthermore, individuals can only seek assistance from AKPK’s Debt Management Programme once in their lifetime, highlighting the importance of careful consideration and commitment.
Impact on Business Operations
Enrollees may face restrictions on opening company accounts, potentially impacting business operations and financial management strategies.