PUTRAJAYA: The Ministry of Housing and Local Government (KPKT) has issued a stern warning to the public, especially those struggling financially, to steer clear of illegal moneylending schemes. Minister Nga Kor Ming emphasised that loans should only be obtained from licensed moneylenders registered under the Moneylenders Act 1951 (Act 400).
Under the law, licensed lenders cannot charge more than 18% annual interest for unsecured loans and 12% for secured loans. Nga clarified, “Moneylenders are not allowed to impose total interest charges that exceed the principal amount.” The reminder follows a recent house fire in Taman Tasek Gelugor Utama, suspected to be linked to illegal loan activities.
Section 29(B) of Act 400 bars licensed lenders or their agents from visiting borrowers’ homes or workplaces for repayment collection or intimidation. Nga urged victims to report violations to KPKT or the police promptly.
The public can verify a lender’s legitimacy via the i-Kredikom app or by contacting KPKT. Nga condemned illegal lenders for exploiting vulnerable groups, trapping them in debt cycles through high interest rates, harassment, and violence. He called for stronger police action to eliminate such practices.
