Muhammad Adam bin Ali
When money is tight, ads for “instant loans, no documents” look tempting. Behind them may be an Ah Long — an illegal lender charging extreme interest and collecting with threats.
Licensed moneylenders
In Peninsular Malaysia are licensed by the Ministry of Housing and Local Government (KPKT) under the Moneylenders Act 1951 (Act 400). Among other things, the law sets:
- Maximum interest of 12% a year for secured loans and 18% a year for unsecured loans.
- Total interest may not exceed the original loan amount.
- No extra charges beyond stamp duty and attestation fees set out in the agreement.
- Violent or threatening debt collection is a criminal offence punishable by fines and jail.
How to check a licence
- Ask for the company name and licence number.
- Look it up in the licensed moneylender list on KPKT’s official website.
- Make sure the premises and company name match.
- Get a signed written agreement.
Warning signs of an Ah Long
- No licence number, or refusal to give one.
- Ads by SMS, random WhatsApp messages, stickers on poles or flyers.
- An upfront fee before approval.
- Asking you to hand over your ATM card, PIN or original MyKad.
- Very high “daily” or “weekly” interest.
- No written agreement.
- Threats to you, your family or your employer.
If youâre caught up
Don’t keep paying under threat. Make a police report and contact KPKT about moneylender complaints. If the problem is mounting debt, AKPK offers free counselling.
Disclosure: Ringgit Sihat is a Nimbura publication, operated by MALAYSIA HUB SIA, the parent company of Nimbura Sdn. Bhd. — a KPKT-licensed moneylender. Our licence details are on nimbura.my — and you can check them in the KPKT list like any other lender’s.
Key takeaways
- Check the KPKT licence before borrowing.
- Legitimate lenders never ask for upfront fees or your ATM card.
- Report threats to the police.
