How to Check a KPKT-Licensed Moneylender in Malaysia

When looking for a loan online, one of the most important things to do before applying is to check whether the moneylender holds a valid licence.

A professional-looking advertisement or an easy application process does not necessarily prove that a company has a valid licence. As a borrower, you should check the company information and understand the loan terms before making a decision.

In Malaysia, licensed moneylenders, or Kredit Komuniti, are regulated by the Ministry of Housing and Local Government (KPKT) under the Moneylenders Act 1951 [Act 400].

This guide explains how to check a licensed moneylender, the information to verify and the points to consider before applying.

What Is a Licensed Moneylender?

A licensed moneylender loan refers to a loan offered by a moneylender that holds a valid licence to conduct that activity under the relevant regulations.

Under KPKT, the industry is also known as Kredit Komuniti. The Community Credit Control Division (BKKK) is responsible for regulating the relevant credit activities.

For a more detailed explanation, read LajuCredit’s complete guide to licensed moneylenders in Malaysia.

The key point is that the existence of a website, advertisement or phone number alone is not proof that a moneylender holds a valid licence.

Why Is It Important to Check a Licensed Moneylender?

A check helps you make sure that the moneylender information you see matches the relevant records.

This is especially important when you find an offer through a website, social media, a messaging app or an online advertisement. The name and identity of a legitimate company can also be misused by another party.

KPKT has warned that loan scam methods include using the names of licensed moneylending or Kredit Komuniti companies to offer loans.

Therefore, do not make a decision based only on a company name or the appearance of an advertisement.

How to Check a KPKT-Licensed Moneylender

KPKT provides the i-KrediKom app, which lets the public search for licensed Kredit Komuniti companies in Peninsular Malaysia. The app also provides information about borrowers’ rights and complaint channels.

Here are several things you should check.

1. Search for the Company Through i-KrediKom

Begin by checking through i-KrediKom.

According to KPKT information, the public can use this app to search for licensed Kredit Komuniti companies.

Do not rely solely on a screenshot of a licence sent through WhatsApp, Telegram or another platform. Conduct your own check through an official channel.

2. Make Sure the Company Name Matches

After finding the company record, check whether the company name shown matches the party offering you the loan.

According to KPKT, a moneylender’s licence contains details such as the name of the individual, company or firm, its registered address, approved operating address, licence number and the licence start and expiry dates.

If the information given to you does not match, do not proceed simply because the party claims to represent a licensed company.

3. Check the Licence Validity Period

Knowing that a company once held a licence is not enough.

KPKT advises prospective borrowers to make sure that the Kredit Komuniti provider has a valid moneylender’s licence that remains in force.

Therefore, check the relevant licence dates as well.

4. Check the Advertisement Information

Advertisements by licensed moneylenders are also subject to specific requirements.

According to KPKT, an advertisement must contain details such as the licence number and its validation date, advertising permit number, the licensed moneylender’s name, address and phone number, and the interest rate offered.

If an advertisement provides only a phone number and asks you to contact a particular individual without clear company information, conduct further checks before providing any personal information.

How Do You Check an Online Licensed Moneylender?

An online application does not mean you can skip the checking process.

KPKT has specific guidelines for online moneylending and also publishes a list of moneylending companies approved to conduct online moneylending transactions.

Therefore, when searching for an online licensed moneylender, do not look only at whether the website appears convincing.

Check the company’s identity, licence information and whether the information provided is consistent with official sources.

This is also important for people searching for online loans in Malaysia, because a fast or easy digital process is not a substitute for checking the licence and loan terms.

Warning Signs to Look Out For

Be careful if the information provided to you is difficult to verify or differs from official records.

KPKT has listed several characteristics to watch for in the context of loan scams, including requests for upfront payments, misleading advertisements that display only a phone number and misuse of a licensed company’s name.

You should also not sign a loan agreement that is still blank. KPKT states that borrowers are entitled to receive a copy of the agreement free of charge and should obtain a receipt for repayments made.

If an offer pressures you to make an immediate decision without an opportunity to check the information and terms, take time to conduct the checks first.

Check the Interest Rate and Loan Terms

Licensed status is not the only thing to check. You should also understand the cost of the loan.

Under the Moneylenders Act 1951, KPKT states that interest rates must not exceed 12% a year for secured loans and 18% a year for unsecured loans.

Before applying, check the loan amount, interest rate, total repayment, loan term and any charges or penalties stated in the agreement.

Do not look only at the amount of money you can receive. The total amount to be repaid is also important when deciding whether the commitment fits what you can afford.

Are Licensed Moneylenders and Ah Long the Same?

No.

Licensed moneylenders are subject to the Moneylenders Act 1951 and the related regulations. KPKT distinguishes licensed and unlicensed moneylenders in terms of agreements, interest rates, debt recovery methods and business operations.

This distinction matters because the term “money loan” sometimes leads people to assume that all non-bank lenders operate in the same way.

We will explain this in more detail in a guide to the differences between licensed moneylenders and Ah Long.

What Should You Check Before Applying?

Before applying for a loan, do not ask only, “how much can I borrow?”

Make sure you know who the moneylender is, whether the licence remains valid, the interest rate charged, the total repayment, the loan term and the conditions in the agreement.

KPKT also reminds prospective borrowers to make sure that the agreement uses the prescribed form. Schedule J is used for unsecured loans, while Schedule K is used for secured loans.

If there is information you do not understand, ask for an explanation before agreeing or signing a document.

Check First Before Making a Decision

Looking for a loan when money is urgently needed can make a person focus more on application speed than other matters.

However, the checking process remains important.

Before choosing any licensed loan, check the company information through official channels, make sure the licence remains valid and read the loan terms carefully.

If you are still comparing options, you can read LajuCredit’s guide to licensed moneylenders to understand how licensed loans work in Malaysia.

LajuCredit encourages people to make decisions based on clear information, repayment affordability and terms they understand, rather than only on how quickly they can obtain money.