4 Useful Personal Loan Application Tips, Don't Fall Victim To Ah Long!
pinjaman kredit komuniti

4 Useful Personal Loan Application Tips, Don’t Fall Victim To Ah Long!

Those whose source of income has been dwindling down and are unable to apply for the moratorium or not eligible for one might consider a personal loan application instead.

As we all know, even though the moratorium aid can help in delaying the monthly installment but to compensate, the tenure of the debt will be longer. We understand that there are some applicants who prefer to settle their debts by debt consolidation or overlap. There are also those who contacted AKPK to seek advice on the repayment of existing debts.

As an alternative, the government has also allowed registered Credit Community Companies to operate during the MCO period to help prevent the public from borrowing money from loan sharks or Ah Long. This is because not all applicants require a big amount of financing to continue on with their lives during the MCO period.

Even though they are Credit Community Companies (KK), they receive a lot of personal loan applications however a lot of the applicants are considered high risk applicants due to the source of income being affected. Hence, there are several tips that can help in increasing the chances of approval for your personal loan.

1. Apply safe personal loan with Licensed Money Lender

We understand that there would be borrowers who might need a lower amount of financing with a shorter tenure to sustain their needs during the MCO period. Applying for a personal loan with commercial banks takes a longer period to process with uncertainty on the approval.

There is no harm in trying another alternative that is faster and safer, which is applying for a personal loan with a licensed money lender or credit community company. Credit community companies (KK) are able to process and approve the loan application in just a short amount of time, as fast as 24 hours.

Here are 3 personal loans from licensed moneylenders that we recommend.

No upfront fees or payment & ATM card is not needed. Borrowers can apply for a personal loan with a minimum amount of RM500 and up to a maximum of RM20,000. The tenure of the loan is 3 months up to 4 years (depending on the loan amount).

JCL Credit Leasing

Apply safe personal loan
  • Monthly interest rate of 1.5%
  • Approval within 3-5 working days
  • For KL, Selangor, Negeri Sembilan, P. Pinang, Johor and Perak
  • Loan tenure up to 5 years


Apply safe personal loan
  • Monthly interest rate of 1.5%
  • Approval in 24 hours
  • Only in KL & Selangor
  • Loan tenure up to 2 years
  • Registered company under BB Capital Sdn Bhd


Apply safe personal loan
  • Monthly interest rate of 1.5%
  • Approval in 24 hours
  • Open for whole of Malaysia
  • Loan tenure up to 6 months

Civil servants (Police & Army excluded) who need a small financing amount and shorter tenure are also eligible to apply and employer confirmation is not needed. Approval is fast as 24 hours.

2. Apply with Licensed Money Lender that are located nearby to where you live

According to the MCO SOP, we are only allowed to leave the house within 10km of the vicinity. To avoid any problems with the authorities, you are advised to apply financing with credit community companies that are located nearby to where you live. There are several Credit Community Companies (KK) that require the applicants to physically sign the loan agreement at their office once it has been approved. To illustrate, Instaduit’s personal loan is only open for those who reside in Klang Valley only and you are needed to physically come to the office to sign the loan agreement.

3. Ensure that you apply personal loan with licensed and safe Credit Community Companies

Even though you are in a desperate situation and really need money fast, make sure you take the necessary steps and be careful before receiving any financing or choosing a personal loan. With the ongoing pandemic, a lot of personal loan scam syndicates are trying to take advantage to deceive victims.

6 Signs of Personal Loan Scam You Must Know:

1. Pay upfront payment before receiving a loan

2. Need to give ATM card or debit card

3. Have not applied for loan or loan amount is more than what you have applied

4. Offers or loan schemes that are ‘too-good-to-be-true’

5. Forced to make fast decisions

6. The personal information requested is suspicious

Read more: How to Identify Loan Scams & What to Do If You Have Been Scammed

4. Apply for a low interest rate personal loan

Credit community companies are aware of the situation of borrowers, especially those who are affected and those whose incomes are not certain. Hence, you can try to apply financing at a lower amount that has a lower interest rate. If the amount of financing is low with a shorter tenure, you are able to repay the debt faster and settle bad debt faster. You can convince the credit community company and the approval rate will be faster than the first time you apply for a loan.

If you are a civil servant, you are also eligible to apply for financing with several selected banks and government cooperatives that offer safe personal loans with interest as low as 2.69%.

Here are several banks & cooperatives that you can try:

  1. Co-opbank Pertama (CBP) – Fixed interest as low as 2.69%
  2. Public Islamic Bank – MCCM – Interest from as low as 3.90%
  3. Ambank – MCCM – Interest as low as 4.08%
  4. Koperasi Ukhwah – Interest as low as 4.35%
  5. Koperasi KOPUTRI – Interest as low as 5.90%
  6. RCE Yayasan Ihsan Rakyat – Interest from 5.99% yearly
  7. Koperasi KOBETA – Interest as low as 5.99%

Are licensed money lender considered to be Ah Long?

Before you apply for financing from licensed money lenders, you might feel hesitant and unsure about the differences between licensed money lenders and Ah Long (also known as loan sharks).

To put it simply, licensed money lenders are supervised by the Ministry of Housing and Local Government (KPKT) and comply with Money Lenders Act 1951, whereas compared to Ah Long where they are the ones who make all the decisions and rules with interest rates reaching up until 30% or higher. As for licensed money lenders, they are only able to set the interest rate up to 12%.

A lot of Ah Longs do not provide any loan agreement, the applicants are able to receive the money fast without signing any loan agreement compared to licensed money lenders whereby the loan agreement will be verified by third parties such as lawyers, legal officers, or commissioner of oaths.

If you are still unsure, you can contact or refer to the information regarding licensed money lenders or credit community companies at  KPKT official website and any complaints or inquiries regarding the licensed credit community can be made through their website.


A lot of personal loans from credit community companies, only offers financing amount up to RM20,000, if you need a higher amount, you can also apply for loans with bank or cooperatives for debt consolidation or overlap old loans or high interest debt to help lessen your monthly commitment.

Loans from cooperatives can also be used to start or expand your business, renovate your house, buy a car or motorcycle, pay educational fees, marriage, and many emergency matters as well. Financing from these banks & cooperatives offers an interest rate as low as 2.69% or approval as fast as 2 working days. 

This article is prepared by Direct Lending. A digital platform that helps you to find, make comparisons, and apply for the cheapest and most suitable personal loan for you. Our smart eligibility checking system is able to suggest the best personal loan from Bank and Cooperatives for you.

Our service is 100% free, with no upfront fees or processing charges. 

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