Want Cash Editorial Team · Last reviewed 27 August 2026
Educational information only. Eligibility, rates and regulatory requirements may change.
Borrowing from a non-bank lender does not automatically mean borrowing outside the law. Malaysia has a regulated moneylending industry. The distinction that matters is whether the lender is properly licensed and whether the transaction follows the legal framework governing licensed moneylending. That distinction becomes especially important when a borrower is under financial pressure. Urgency can make promises such as “instant approval”, “no questions asked” or “guaranteed cash” sound attractive. It can also make it easier for an illegal operator to take advantage of the situation. Here is what Malaysian borrowers should check before entering a moneylending agreement.
Who regulates licensed moneylenders in Malaysia in 2026?
As of August 2026, licensed moneylenders remain under the regulatory supervision of the Ministry of Housing and Local Government, commonly referred to as KPKT, during Phase I of the Consumer Credit Act transition. Malaysia’s Consumer Credit Act 2025 came into force on 1 March 2026, with its licensing and registration provisions taking effect on 1 June 2026. The new Consumer Credit Commission, SKP, now regulates several previously unregulated non-bank credit sectors. Moneylending is different. The Government’s phased transition states that KPKT continues to act as the relevant regulatory and supervisory authority for moneylending during Phase I. The transfer of relevant KPKT consumer-credit functions to SKP is planned for Phase II, from 2028 to 2030. Existing moneylender licences issued under the Moneylenders Act 1951 remain valid during Phase I. [1]
How can you check whether a moneylender is licensed?
Do not rely on a logo, WhatsApp profile, social-media advertisement or a statement saying “KPKT approved.” Verify it. KPKT states that members of the public can check licensed moneylenders using its i-KrediKom application. KPKT also maintains its Community Credit Control Division and online systems relating to licensed moneylending. [2] A licence contains identifying information including the licensed business name, registered address, approved operating address, licence number, commencement date and expiry date. Those details should correspond with the business you are dealing with. [2]
If the name, address or licence details do not match, stop and verify before providing personal information or money.
A licensed lender and an Ah Long are not the same thing
KPKT makes a clear legal distinction between licensed moneylenders and unlicensed moneylenders. Licensed lenders operate under statutory requirements governing agreements, interest, documentation and recovery. An illegal moneylender operates outside that regulatory framework. KPKT notes that complaints involving licensed moneylenders can be made through KPKT’s complaint system, while complaints involving unlicensed moneylenders should be made to the Royal Malaysia Police. [2] Borrowers should not assume that every non-bank financing provider is an illegal lender. Likewise, they should not assume that every company using professional branding is licensed. Verification is the deciding step.
What interest rates can licensed moneylenders charge?
KPKT’s current guidance states that interest for a secured loan must not exceed 12% per annum, while interest for an unsecured loan must not exceed 18% per annum under the Moneylenders Act framework. [2] That is an important reference point when evaluating an offer. A borrower should also understand the entire repayment obligation rather than looking only at the headline rate. Ask what the monthly repayment is, how long it continues, what fees apply and what happens if a payment is late.
What rights does a borrower have?
KPKT identifies several protections for borrowers dealing with licensed moneylenders. The borrower must be provided with information that is not misleading. The loan agreement must use the prescribed form applicable to the facility. A borrower is entitled to a copy of the agreement without charge and should receive receipts for repayments. KPKT specifically warns borrowers not to sign blank loan agreements. [2] Never sign first and allow someone to “fill in the details later.” The amount, interest, repayment schedule and relevant terms should be clear before you sign.
What should appear in a licensed moneylender’s advertisement?
Advertising is also regulated. According to KPKT, licensed moneylender advertisements are required to include information such as the lender’s licence number and validity, advertising permit number, licensed business name, address, telephone number and the interest rate offered. [2] A social-media advertisement containing nothing more than a phone number and claims such as “100% approve” deserves greater scrutiny.
Be careful with upfront charges
KPKT’s guidance identifies the types of loan-related costs that may legally arise under the Moneylenders Act, including applicable stamp duty and legal costs connected with loan negotiations. It also addresses the treatment of other costs or expenses. [2]
Before making any payment, ask exactly what it is for and where the charge appears in the agreement. Do not send money simply because someone says a “deposit”, “unlocking fee” or “account activation fee” is necessary to release a loan. Verify the lender and the charge independently.
Understand debt collection rules
Legal lending does not give a lender unlimited power over a borrower. KPKT states that licensed moneylenders or their representatives are not permitted to visit a borrower’s home, workplace or other location to collect instalments outside the lender’s approved business premises in the manner described by KPKT’s guidance. Harassment or threats in debt collection can amount to an offence. [2] If you believe collection activity is unlawful, document what happened and contact the appropriate authority.
The Consumer Credit Act adds another layer of consumer protection
Malaysia’s credit-regulation system changed substantially in 2026. The Consumer Credit Act 2025 was introduced to strengthen fair, responsible and professional conduct across the consumer-credit industry. SKP states that consumers have a right to clear and transparent information on credit terms, including interest rates and charges. [3] During the current transition, the regulatory authority can differ depending on the type of provider. For consumers, however, the underlying principle is straightforward: know who is providing the credit, verify the provider and understand the agreement before accepting it.
Red flags worth taking seriously
Be cautious when a supposed lender cannot provide verifiable licence information, refuses to explain the agreement, asks you to sign blank documents, hides the total repayment amount, pressures you to transfer money immediately, communicates only through disposable messaging accounts or uses threats before a legal repayment issue even exists. No single visual element proves legitimacy. A polished website is not a licence. A company registration is not automatically a moneylending licence. A Facebook page is not regulatory approval. Check the actual licence.
How Want Cash fits into this framework
Want Cash states that it is a legally licensed moneylender authorised by KPKT and operates under the Moneylenders Act 1951. Its website positions the company around personal financing, SME financing, secured facilities and debt restructuring support. [4] For maximum trust, the website should also display its current KPKT licence number, validity period and approved business details prominently so visitors can independently verify them.
Verify before you borrow
The safest question is not: “Can this company approve me?” Ask: “Who is this company, who regulates it, and can I independently verify its authority to provide the financing being offered?” Five minutes spent checking a lender can prevent a much larger problem later.
Frequently Asked Questions
Are licensed moneylenders legal in Malaysia?
Yes. Licensed moneylending is regulated under Malaysian law. In 2026, KPKT continues to supervise moneylending during Phase I of the Consumer Credit Act transition.
What is the maximum interest rate for a licensed moneylender?
KPKT states a maximum of 12% per annum for secured loans and 18% per annum for unsecured loans under the applicable Moneylenders Act framework.
How can I check a KPKT moneylender licence?
KPKT directs consumers to its i-KrediKom application and official channels for licence verification.
Is SKP replacing KPKT?
Not immediately for moneylending. KPKT remains the relevant authority during Phase I. Transfer of relevant KPKT functions is planned for Phase II, from 2028 to 2030.
Sources
[1] Consumer Credit Commission (SKP) – Consumer Credit Act 2025: Source: skp.gov.my
[2] KPKT – Licensed moneylender guidance: Source: kpkt.gov.my
[3] SKP – Consumer Credit Act FAQs: Source: skp.gov.my
[4] Want Cash Financing: Source: wantcashfinancing.com
