MIC-run education institute to take loan defaulters to court

July 24th, 2007 by poobalan | View blog reactions Leave a reply »
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who's fault is this?
MIED for not being strict?
Borrowers for not having the PSR (Personal Social Responsibility) to pay back?
MIC-run education institute to take loan defaulters to court

KUALA LUMPUR: The MIC-run Maju Institute of Educational Development (MIED) will take court action to recover RM30mil (US$8.6mil)owed by 5,500 loan defaulters. 

MIC president Datuk Seri S. Samy Vellu said the MIED would send the legal notices to the defaulters who had already completed their studies. 

“If they ignore the notices or fail to pay up, we would haul them to court to reclaim the money,” he told reporters after chairing the party’s central working committee meeting here on Tuesday. 

He said MIED had already disbursed RM64mil (US$18.4mil) to over 13,000 students but only 9,000 of them could be traced. 

Samy Vellu said 800 students who had also taken the educational loans, had already paid up RM11mil (US$3.2mil). 

“There are another 3,500 students who are currently pursuing their studies and had obtained RM23mil (US$6.6mil),” he said. 

He said about 3,000 students are expected to submit their applications for RM10mil (US$2.9mil) in educational loans this year but the MIED does not have the money. 

“If we able to collect the money from the loan defaulters, it would be used to give out loans to other deserving students,” he said.


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