What are the rights and duties of a bank during the course of a housing loan?

Both borrower and financial institution have certain rights and duties during the course of the loan.

Some of the more important ones include:

Rights of Financial Institution

  • Right to have full relevant disclosure of information on borrower's credit standing

  • Right to correct and truthful information on the borrower

  • Right to timely repayment of interest/instalments of the loan

  • Right to enforce legal action in the event of default/breach of contract

Duties of Financial Institution

  • Duty to discharge borrowers' obligations as described in the loan agreement

  • Duty to consult borrowers on any changes made to the terms and condition, fees charged and other relevant information

  • Duty to attend

A Loan Officer can provide invaluable assistance, and clarify issues which you are unsure. Take the time to discuss your housing loan questions with a loan officer at length so that you can choose a loan facility that best suits your needs.

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Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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Knowledge Base ID :   1279
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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