AKPK helps 170,000+ Malaysians qualify for low-interest loans

Empowering Malaysians nationwide with financial knowledge via self-paced online modules

‍

The Challenge

In January 2019, the Central Bank of Malaysia (BNM) launched the RM 1 Billion Fund for Affordable Homes to help low-income buyers finance their first-home purchase. However, potential applicants needed to fulfil a mandatory financial education module to qualify for the low-interest loans—a necessary move given low financial literacy levels amongst Malaysians.

‍

• 6% of Malaysians have enough saved up to meet financial obligations for up to 6 months. Source: BNM Study, 2018
• 1 in 2 Malaysians say poor financial management is cause for excessive personal debt. Source: AKPK Survey, 2018

‍

The Credit Counselling and Debt Management Agency (AKPK) was tasked to provide a financial education module for this segment of first-time home buyers. AKPK needed a solution that could be easily implemented nationwide—one that was affordable, accessible and more effective than current on-ground efforts.

‍

The Solution

AKPK launched RUMAHKU in both English and Bahasa Malaysia as a requirement for first-time buyers to proceed with their home loan applications. Potential applicants across the country could access the self-paced online module—which takes approximately 1-hour to complete—at anytime, from anywhere. As proof of eligibility, applicants could attach their digital completion certificates to their loan application at participating banks.

‍

‍

The Results

‍

In less than 10 months, AKPK has managed to:

‍

• Enrol 25,665 potential first-time home buyers across the country into the RUMAHKU online module, 71.5% of whom have completed the course and received certificates.
• Enable 2,567 Malaysians per month to have free access to RUMAHKU from OpenLearning marketplace. This helps AKPK fulfil their goal of raising financial literacy levels nationwide.

‍

AKPK also identified those who may need personalised financial advice and counselling. Among those who took the RUMAHKU survey:

‍

‍

On 20 August 2019, BNM announced revisions to the policy - giving more low-income Malaysians access to the Fund. This means:

‍

• A new segment of first-time home buyers will have to complete the RUMAHKU module to qualify for loans
• 10 days after the BNM announcement alone, a total of 2,109 Malaysians have already enrolled in module
• The online module is able to cater to policy changes and spikes in demand without additional efforts by AKPK

‍

Moving Forward

Realising the possibilities of scalable and responsive financial education nationwide:

• AKPK has launched a pre-marital financial literacy module for young couples, and is piloting a similar module for potential higher education student loan applicants.

‍

Looking for a scalable solution that can drive responsive financial education nationwide? OpenLearning can help. Get in touch today.

‍