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.
Previous: Rights and Duties of Borrowers
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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