Question 1

Who is a licensed moneylender?

Accepted Answer

A licensed moneylender is authorized by the Ministry of Local Government Development (KPKT) under the Moneylenders Act 1951. Each licensed moneylender holds a valid license showing company details, address, license number, and validity period.

Question 2

What are the interest rates?

Accepted Answer

Unsecured loans are capped at a maximum of 18% per annum, while secured loans are capped at 12% per annum under the Moneylenders Act 1951 in Malaysia.

Question 3

How much can I borrow and for how long?

Accepted Answer

Loan eligibility depends on income, existing debts, and credit profile. Loan amounts can be up to RM20,000 or higher with collateral. Loan tenure ranges from 6 months to 5 years depending on approval.

Question 4

Do I need to provide my ATM card to apply?

Accepted Answer

No. Licensed moneylenders do not require your ATM card for loan applications. You should never share your ATM card details with any lender.

Question 5

What are the minimum and maximum loan tenures?

Accepted Answer

The minimum loan tenure is 6 months and the maximum is 60 months (5 years), depending on individual credit assessment.