Licensed Moneylender Apps Under Scrutiny Over Loan Charges

A social media post has sparked discussion among Malaysians about the way some licensed moneylending apps structure loan disbursements and repayments.

The post claims borrowers may apply for amounts such as RM2,000 but receive only RM1,490, while a RM3,500 application could result in RM2,625 being credited. It urges borrowers who believe they have been overcharged or subjected to unlawful practices to lodge complaints with the Ministry of Housing and Local Government (KPKT).

Borrowers Urged to Know Their Rights Before Taking Loans

According to KPKT, licensed moneylenders must comply with the Moneylenders Act 1951. For unsecured loans, the maximum interest rate is 18 per cent per year, while secured loans are capped at 12 per cent.

Borrowers are also entitled to a copy of their loan agreement and payment receipts. Complaints involving licensed moneylenders can be submitted through KPKT’s SISPAA system

The post also warns borrowers against taking another loan simply to settle an existing loan, arguing that this could worsen their financial situation.

It encourages affected borrowers to document their transactions and seek official assistance instead. KPKT also provides an i-KrediKom platform for the public to check whether a moneylending company is licensed.