Regulate loan firms

I AM a simple teacher struggling to make ends meet.
Many of my colleagues complain in the media regarding their pay issues such as pay cuts, leave fares, boarding duty allowances and so forth.
In the face of these problems, most of us seek loans from financial institutions for our own reasons.
Most financial institutions give loans to their genuine customers after meeting certain requirements.
One them is Bank South Pacific.
I have always trusted Bank South Pacific because I am one of those genuine customers.
However, I found out that I am not a trusted customer but just another milking cow to BSP.
I have been cheated one way or the other, I guess.
I obtained a loan worth K20,000 late last year from the BSP to fund my wedding.
I am repaying the loan on a fixed interest rate of 27 per cent per annum as well as a default interest rate of 5 per cent per annum.
Thus, the total interest rate in 32 per cent per annum.
So 32 per cent of K20,000 is K6,400. So I am paying K6,400 per annum.
The loan term in 36 months which is three years from the date I received the loan, so a total of K19,200 will be paid within these three years.
With the loan application fee of K700 which is included in the loan, I have to pay a total of K19,900 from the K20,000 loan.
I am paying K388.52 fortnightly to pay off K39,900 to the bank after obtaining K20,000 loan.
This is nearly 100 per cent interest charged.
Be careful my colleagues.
PNG has the Loans and Assistance (International Finance Agencies) Regulation 1978.
Why not have similar laws for domestic finance agencies.
Protect the genuine hard working citizens from loan sharks.
Others such as Banks and Financial Institution Acts 2000 should have a section that should support borrowers from becoming milking cows for the lenders.

Ambum Duu Yawalits,
YBO