Malaysia launches online payment system to settle mortgage loans

In Malaysia civil servants will be provided with an option to settle their home loans online via the dedicated electronic payment service introduced recently by the government. The online payment service launched by the Loans Division of the Treasury Department allows borrowers to pay off their loans through CIMB Clicks and Maybank2u, the web portals of the two banks, which automatically debit installments from their savings or current account.

According to official reports the division will also be able to pay off the developers or contractors online without issuing checks to them.

"We are also going to work with the director of the Land and Mines Office for an e-Cagaran (e-Surety) service to speed up payment and the issuance of mortgage,” said Treasury secretary-general Tan Sri Dr Wan Abdul Aziz Wan Abdullah. "With this, developers won't even have to wait for the division to receive the grant first, and borrowers can avoid late penalties by the developers."