This page is template text. Have it reviewed by a Malaysian lawyer against your actual business and the applicable laws before launch.
Your loan agreement is signed with our licensed lending partner, a moneylender licensed by KPKT under the Moneylenders Act 1951. This guide explains in plain language what the agreement contains, gives you a checklist to go through before you sign, and explains what to do afterwards. It doesn't replace the agreement itself: if anything differs, the signed agreement applies.
1. What the agreement contains
The loan amount (principal) and the date the money is paid to your own bank account. There are no processing or admin fees, so nothing is deducted from the payout: the amount in the agreement is the amount you receive.
The interest rate per year, and how interest is charged. For instalment loans, you repay in equal monthly instalments on a reducing balance: each instalment carries interest of the outstanding balance × annual rate ÷ 12 (RM 40.83 in month 1 on RM 10,000 at 4.9% p.a.). Interest is counted by the day, at the annual rate ÷ 360, only if you settle or prepay between due dates. By law (Moneylenders Act 1951), interest is capped at 18% a year on unsecured loans (12% on secured loans). The law sets no formula, and in practice the cap is applied as a flat rate on the original amount, so the equivalent reducing-balance rate is higher; our reducing-balance rates are well within it. For short-term loans, interest is the amount × annual rate ÷ 360 × days, and you repay the full amount in one go.
The repayment schedule: the number of instalments, the amount of each, and their due dates, plus the total amount payable over the loan (principal plus interest). For example, RM 10,000 at 4.9% p.a. over 12 months means 12 instalments of RM 855.62 (the last may differ by a few sen) and a total payable of RM 10,267.40.
What happens if you pay late (late payment interest), how to settle early, and how to make repayments: by bank transfer, FPX or JomPAY to the lender's official account only.
2. The prescribed form (Schedule J)
Under the Moneylenders Act 1951 and the Moneylenders (Control and Licensing) Regulations 2003, every moneylending agreement must use the prescribed form: Schedule J for unsecured loans and Schedule K for secured loans. An agreement in any other form is void. The prescribed form means the key terms appear in a standard layout, which makes them easier to check and compare.
The agreement must be stamped. Stamp duty on loan agreements is generally 0.5%; your adviser will tell you before signing the exact amount and who pays it.
Late payment interest is capped by law: under the Moneylenders Act 1951 it is at most 8% a year simple interest, calculated daily, on the overdue instalment only. The rate that applies to you is written in your agreement.
3. How signing works
After your adviser confirms the offer on WhatsApp, you sign the agreement with our licensed lending partner. Your MyKad is verified at signing, and you give the bank account in your own name for the payout (for an SME Business Loan, the bank account named in your agreement).
Take your time. You can ask your adviser to send you the key figures in writing first, and to explain anything you don't understand. You are never obliged to sign.
4. Checklist before you sign
1. Your details: your name and MyKad number are correct, and the payout bank account is in your own name (for an SME Business Loan, it's the bank account you gave for the business).
2. The money: the loan amount, annual interest rate, number of instalments, instalment amount and total payable match what your adviser confirmed on WhatsApp. Use the calculator on our Rates & fees page to double-check the figures.
3. The lender: the lender named in the agreement is a licensed moneylender and its licence number is shown. You can check it against KPKT's official list.
4. The payment account: repayments go to the lender's official company account stated in the agreement, never to a personal account.
5. The extras: the late payment terms are stated, and there are no fees you weren't told about. We charge no processing or admin fees.
6. The blanks: nothing is left blank. If anything is blank, unclear or different from what you were told, don't sign until it's corrected.
5. Questions worth asking before you sign
'What is the total amount I'll repay if I pay every instalment on time?'
'How much would I need to settle in full after, say, six instalments?' Your adviser can give an estimate, and our Early settlement calculator under Calculators shows the same thing.
'If I make a partial prepayment, what will my new instalment be?' A partial prepayment (at least RM 1,000) lowers your instalment and keeps the same end date.
'What exactly happens, and what does it cost, if I'm late by a few days?'
6. Your rights as a borrower
A copy of the signed agreement: under the Moneylenders Act 1951, the lender must give you a stamped copy of the signed agreement before the loan is paid out. Keep it somewhere safe.
A statement of account on request: under the Moneylenders Act 1951, you can ask the lender in writing for a statement of your loan account at any time while the loan runs. The lender may charge a fee of RM 3 and must provide it within one month. It shows what you've paid, any overdue amounts and what isn't due yet. Advisers also record every payment you make, so you can ask them for an up-to-date summary at any time.
Early settlement at any time with no penalty: you pay the outstanding principal plus interest up to the settlement date. You can also make partial prepayments of at least RM 1,000, which lower your monthly instalment and keep the same end date.
To complain and to escalate: see our Complaints page for how to raise an issue with us, our licensed lending partner, or KPKT.
7. After you sign
Check the payout has arrived in your account and matches the loan amount in full.
Note your due dates in your phone calendar, and save the lender's official account details from your agreement for repayments.
Keep every payment receipt. After your first payment, check your adviser has confirmed it. If a payment ever isn't recorded, send the receipt and ask for an updated statement of account.
8. What we will never ask you to do
Pay any upfront fee, deposit, insurance or 'release fee' before you receive your money.
Give us your OTP or TAC codes, online banking username or password, or your ATM card.
Sign a blank or incomplete agreement, or make a repayment to a personal bank account. Repayments go only to the lender's official company account stated in your agreement. If anyone asks you to do any of these, stop and contact us through the channels on our Contact page.