Angkasa president Abdul Fattah Abdullah said Bank Simpanan Nasional, Yayasan Ihsan Rakyat, CoShare Holdings Bhd, I Destinasi and MBSB Bank Bhd are the other five agencies responsible for managing civil servants’ loan repayments through deductions from their salaries.

In a Utusan Malaysia report today, Fattah said Angkasa usually saw an increase in applications before school reopened, students enrolled in institutions of higher learning and during festive seasons.

For this Hari Raya Aidilfitri, he said Angkasa had seen a 1% increase in the number of applications for loans.

“We have seen an additional 10,000 applicants,” he said.

He also attributed this increase in loan applications from civil servants to the rising cost of living.

Meanwhile, Cuepacs secretary-general Abdul Rahman Nordin has reminded civil servants that their loan deductions cannot exceed 60% of their salary.

Action will be taken against those who violate the threshold, he added.

Rahman said civil servants facing serious debt issues will be called in and offered advice on how to solve their problems.

“We are concerned that a small number of those in desperate need of money may resort to corruption,” he said.