Understand Financial Planning through LOANPANDA

KUALA LUMPUR, Malaysia, June 4, 2024 /PRNewswire/ — Malaysia continues to face significant economic challenges, with the cost of living rising, prices soaring, and the Malaysian Ringgit depreciating. These issues have led to widespread public concern and substantial financial pressures on many families. In response to these challenges, LOANPANDA is launching a new campaign to create awareness about the importance of financial planning and the resources available through their services.

Finance can be a complex topic and may seem hard to explain. Educating customers can be daunting, especially when compliance is a key consideration. Many financial services providers rely on agencies and marketing firms to help them navigate these complexities. LOANPANDA aims to simplify this process by offering comprehensive marketing solutions and educational resources to empower Malaysians.

Nicholas Lim Tze Khai, CEO of LOANPANDA, emphasizes the importance of financial education: “Keeping Malaysian young people financially on track is our mission. Educating them with the right mindset on how to handle their wealth, which school never taught us, is vital.” This mission is essential for enhancing economic capacity and ensuring the quality of life remains protected amidst growing economic pressures.

LOANPANDA has essentially become the TripAdvisor of the financial world, aggregating information from banks on loans, credit cards, insurance and SME loan. This allows people to compare these products simultaneously. LOANPANDA acts as a liaison between banks and potential customers, eliminating the need for salespeople that banks typically rely on to sell their products.

For certain products that offer full service, specialized staff at LOANPANDA contact customers, assist with loan paperwork, and submit applications directly to the banks. Customers simply need to have their financial documents ready and wait for a follow-up call.

“Consumers like comparison tools. They want to know what is best for them … tabled and tallied neatly instead of having to approach a myriad of entities like banks to figure out which product works best for them.”

For complicated products like personal loan, SME loan and home loan, consumers receive a simplified application process through LOANPANDA. Instead of applying for loans at individual banks, LOANPANDA’s staff streamline the process by helping consumers find the best-suited loan, completing documentation and paperwork on their behalf, and finally submitting the application to the bank.

“Basically, our principle is that we are our own biggest competitors. We aren’t that gung-ho about finding out what our competitors are doing; we’re here to challenge ourselves. The only thing that can stop us from moving forward is us, not anyone else. We want to focus on what the customers and consumers are saying,” said Nicholas Lim.

Addressing the Financial Strain on Households

The Rising Cost of Living

Recent statistics show that a household needs at least RM 5,000 per month to maintain a basic standard of living. In areas like the Klang Valley, average household expenditures exceed RM 7,000 per month. Regions such as Johor, Penang, and Malacca also see high costs, averaging RM 5,000 and above. The significant financial burden is especially acute in these areas, where essentials like food, clothing, housing, and transportation account for 67% of total expenses.

Stagnant Wage Growth

The Statistics Department reports that the average monthly expenditure for a household is RM 5,150. Many households, however, find their expenses far exceed this figure. For B40 households, with incomes below RM 5,000, financial constraints are particularly severe. The disparity between rising costs and stagnant wage growth makes it difficult for many families to save money.

Housing Market Challenges

First-time homebuyers face major obstacles, with property prices frequently surpassing RM 500,000. Rising raw material costs, labor shortages, currency depreciation, and the Central Bank’s raising of OPR interest rates have continually increased the threshold for purchasing homes. To assist, the government has implemented measures such as exempting stamp duty for residential properties priced below RM 500,000 and offering loans covering up to 110% of the property value.

Increasing Debt Levels

The high cost of living has driven many individuals to rely on credit card spending to ease economic difficulties, often leading to long-term debt accumulation. Many find themselves trapped in a cycle of “credit card debt,” despite increasing monthly salaries. Personal loans, while helpful in the short term, come with high interest rates and repayment pressures that can lead to deeper financial distress and even bankruptcy.

Effective Solutions

Addressing these economic challenges requires effective solutions:

Increasing Income and Controlling Expenses: Boosting income and managing expenses wisely are crucial. Creating budgets, avoiding unnecessary spending, and ensuring balanced income and expenditure are key steps.

Debt Consolidation: For those deeply in debt, consolidating debts can effectively alleviate economic pressure.

Financial Education: Continuous learning about financial management and cultivating good financial habits are essential. This helps in better managing personal finances and coping with economic fluctuations.

About LOANPANDA

LOANPANDA is dedicated to providing resources and education to help Malaysians navigate these financial challenges. Our new campaign aims to raise awareness about the importance of well-planned financial strategies and the support available through LOANPANDA’s services.

For more information, please visit our website at https://loanpanda.com.my or contact us at info@loanpanda.com.

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