In the policy document issued yesterday, Bank Negara Malaysia said the module would be provided by the banks or the Credit Counselling and Debt Management Agency.

Under the new rule, banks will ensure that applicants attend and complete the module before applying for any new personal financing product where the financing amount exceeds RM100,000.

According to the central bank, the aim of the requirement is to assist borrowers in making prudent and smart financial decisions.

“A bank may also encourage financial consumers who are assessed to be of higher risk to attend and complete a financial education module prior to applying for any new personal financing product,” the policy document said.

This is particularly the case for financial consumers with inadequate levels of financial literacy or experience in using financial services or products.

The requirement to undergo a financial education course will not apply to financing for purposes such as the purchase of properties, vehicle financing, education, micro-financing, or financing granted to bank employees, among others.