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Learn MoreWhat is a Licensed Moneylender?
A licensed moneylender is a company legally approved by the Ministry of Housing and Local Government (KPKT) to operate a moneylending business in Malaysia, governed under the Moneylenders Act 1951 (Act 400). This is different from:
- Banks & Financial Institutions: Regulated by Bank Negara Malaysia (BNM).
- Cooperatives (Koperasi): Regulated by the Malaysia Co-operative Societies Commission (SKM).
- Loan Sharks (Ah Long): Unlicensed, unregulated, and operating illegally.
Every licensed moneylender is required to display a valid KPKT license certificate, which can be independently verified by following the steps below.
How to Check If a Moneylending Company is Licensed
Steps to Verify a KPKT License:
- Download the official i-KrediKom app (by KPKT) from Google Play or the App Store.
- Search for the company’s name or license number in the app.
- Confirm that the license status is active (not expired or suspended).
- Request to see the company’s original KPKT license certificate during the briefing—it must be displayed at their premises.
- Ensure every loan agreement is provided in writing, and that you receive a copy for your own records.
Direct Lending Tip: Legitimate licensed moneylenders will NEVER ask for upfront fees before approving a loan, nor will they withhold your ATM card or NRIC. If asked to do so, consider it a red flag.
Differences Between Licensed Moneylenders and Loan Sharks (Ah Long)
| Feature | Licensed Moneylender | Loan Sharks (Ah Long) |
|---|---|---|
| Licensing | Valid KPKT license—verifiable via i-KrediKom | Unlicensed with no official record under KPKT |
| Interest Rate | Capped under the Moneylenders Act 1951 | Excessive interest rates that change arbitrarily |
| Agreement | Written, transparent loan contract | No written contract or non-transparent terms |
| Upfront Fees | No upfront payment required | Frequently demands "processing fees" before release |
| Receipts | Official receipts issued for every payment | No receipts; unclear payment records |
| Recourse | Complaints can be submitted directly to KPKT | Threats, cyberbullying, or vandalism for late payments |
Allowed Interest Rates & Terms
Licensed moneylenders generally charge a fixed interest rate of up to 1.5% per month (equivalent to 18% per annum) for unsecured loans. Different caps apply for secured loans, subject to limits set under the Moneylenders Act 1951 and its regulations.
Any rate exceeding these legal limits is unauthorized by KPKT and categorized as illegal lending. Actual rates can vary by company and should always be verified in the written loan contract before signing, rather than relying solely on advertisements.
Your Rights as a Borrower
- Right to receive a full copy of the loan agreement.
- Right to make an early settlement with a fair interest calculation.
- Right to receive an official receipt for every payment made.
- Cannot be forced to surrender your ATM card, NRIC, or bank account book as collateral.
- Right to lodge a formal complaint with KPKT in the event of harassment, threats, or misconduct.
Need a Cash Loan?
Direct Lending no longer offers personal cash loan services with licensed moneylender panels for private sector employees. Direct Lending provides bank and cooperative personal loans exclusively for civil servants, as well as installment plans for car servicing, car takaful, and medical expenses (Lenda Pay) for all Malaysians (civil servants and private sector employees).
To find a legitimate licensed moneylender near you:
- Download and use the official i-KrediKom app (KPKT) to locate and verify licensed companies in your area.
- Visit the official KPKT portal (www.kpkt.gov.my) for guidelines and complaint channels.
- Use the "How to Check a License" and "Licensed vs. Loan Shark" checklists above before signing any agreement.
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Frequently Asked Questions
A licensed moneylender is a lender that is licensed by Ministry of Local Government Development (KPKT) under the Moneylenders Act 1951. All licensed moneylenders will receive a valid license detailing the company name, address, license number and the validity of the license.
No. Direct Lending is not a licensed moneylender and no longer operates personal cash loan matching services for private sector employees. We provide a complete guide to this industry, as well as offering financing services through: the Lenda Pay app for car servicing, car and medical takaful, and bank & co-op loans for government employees.
We offer Shariah-compliant bank & co-op loans with rates as low as 2.82% per annum. In addition, you can also apply for installment plans for car servicing, car takaful, and medical takaful via Lenda Pay — this financing is open to all Malaysians.
At present, we no longer offer personal cash loans for private sector employees. However, you can apply for installment plans for car servicing, car takaful, and medical expenses through Lenda Pay. This financing is open to all Malaysians with interest rates as low as 1.5% per month (comparable to personal loan rates).
The Lenda Pay app by Direct Lending allows you to pay first and repay in 3–12 monthly installments. All Malaysians are eligible to apply for this financing.
The Ministry of Housing and Local Government (KPKT), which is distinct from banks (BNM) and cooperatives (SKM).
Use the official i-KrediKom app (KPKT) to search for the company name or license number, and request that the original license certificate be displayed during the briefing.
Generally around 1.5% per month (18% per annum) for unsecured loans, subject to limits under Act 400 — always verify the exact figures in the written agreement.
A valid and verifiable license, regulated interest rates, written contracts, and no upfront fee requests — compared to loan sharks, who operate without a license, charge exorbitant interest, and often rely on threats.
No. This is a major red flag that you may be dealing with an illegal moneylender.
Lodge an immediate complaint with KPKT through their official channels, and keep all communication records as evidence.