Your moneylending agreement, explained

Simplified sample for illustration. The wording is shortened and the figures are an example. Your real agreement is the full prescribed form, and an attestor explains it to you before you sign.

Schedule J, Moneylenders (Control and Licensing) Regulations 2003

Moneylending agreement (unsecured loan)

Pick a part of the agreement

1 of 13 parts read

The clauses

In plain words
The law prescribes this exact form for every unsecured loan from a licensed moneylender. A lender cannot write its own version. An agreement that is not in the prescribed form is void.
Check before you sign
The heading says Schedule J and Moneylenders Act 1951. If you are handed a one-page letter, a chat message or a form with another name, stop and ask.
The law behind it
- Moneylenders Act 1951, section 10P

The signing page

The First Schedule: your numbers

Work out late interest yourself

Clause 2 fixes the formula, so anyone can check a lender's arithmetic. Enter the instalment that is overdue and how many days late it is.

Only the overdue instalment counts, never your whole loan balance. Once that instalment is paid, the interest on it stops.

Overdue instalment (RM)Days late30

R =: 8/100 × 30/365 × RM 207.33
Late interest: RM 1.36

When the law will not enforce an agreement

Three failures make a moneylending agreement void or unenforceable, whatever it says inside.

It is not in the prescribed form
Section 10P requires the prescribed form. For an unsecured loan that is Schedule J. A home-made contract has no effect.
It was not attested
Section 27 requires a qualified person to explain the terms to you and certify that you appear to understand them.
You were not given a stamped copy first
Section 16 requires the agreement to be signed by everyone, and a stamped copy delivered to you before the money is lent.

Source: Attorney General's Chambers of Malaysia · Moneylenders Act 1951 (Act 400)

Signs a document is not a real moneylending agreement

It claims to come from Bank Negara or a bank. Licensed moneylenders are regulated by KPKT, and the form names the Moneylenders Act 1951.
It arrives as a photo or PDF in a chat and you are told to sign and send it back, with no attestor explaining it to you.
It asks for a payment to activate, insure or release the loan.
The principal, the rate or the instalment is blank, or differs from what you were told.
The lender's name or licence number does not match KPKT's list of licensed moneylenders.

Words you will meet in the agreement

The form uses legal English. These are the terms people ask about most.

Principal Sum: The amount of money you borrow, before any interest.
Per centum per annum: Percent a year. "4.88 per centum per annum" means 4.88% a year.
Without demand: Due automatically on the date. The lender does not have to ask or remind you.
Simple interest: Interest worked out on the original sum only. It never earns interest on itself, which is what compound interest does.
Attestor: The independent person who explains the agreement to you and signs to confirm it: an advocate and solicitor, a Commissioner for Oaths, a Judicial and Legal Service officer, a District Officer, a Justice of the Peace or someone the Minister appoints.
Stamp duty: A government tax paid on the agreement. A stamped agreement carries a stamp certificate from LHDN.
Time is of the essence: The dates in the agreement are strict terms. Missing one is a breach, not a small slip.
Successors and permitted assigns: Whoever lawfully takes over a party's position, for example a company that acquires the lender's business, or your estate.

Questions about your agreement

I lost my copy of the agreement. Can I get another?

Yes. Ask the lender in writing and offer RM 5 for expenses. The Act requires the lender to give you a copy of any document relating to your loan (section 19).

How do I find out exactly how much I still owe?

Ask in writing for a statement of account and offer RM 3. It must be signed and show the loan date, principal and rate, every payment received, what is overdue and what is not yet due. A lender that ignores the request for a month cannot sue or charge interest for the period of its default (section 19).

Should I get a receipt for every payment?

Yes. A licensed moneylender must give you a receipt each time it receives a repayment (section 19). Keep them with your agreement.

Can the lender fill in the amount or the rate after I sign?

No. Preparing an agreement in which the principal or the rate is not truly stated, or is left blank to fill in later, is an offence (section 27B). Do not sign a form with blanks.

How long does the lender keep my agreement?

At least seven years from the end of the year the loan was made, together with the accounts of your loan (section 18).

Source: Attorney General's Chambers of Malaysia · Moneylenders Act 1951 (Act 400)

We only make unsecured loans

Every loan from MyOneCredit uses Schedule J, the unsecured form shown above. We do not take property, vehicles or other assets as security, and we do not ask for a guarantor. For information: secured loans from other lenders use Schedule K and carry a 12% cap instead of 18%.

Based on Schedule J of the Moneylenders (Control and Licensing) Regulations 2003 and the Moneylenders Act 1951. This page is a plain-language guide, not legal advice.