A loan agreement isn't meant to be skimmed. Five minutes with this checklist tells you exactly where to look — and what a licensed lender must give you by law.
Find the five numbers first
Before reading anything else, locate these five figures and make sure they match what you were quoted. Using our standard RM 10,000 example:
| Item | What to check | Example (RM 10,000 · 24 months) |
|---|---|---|
| Principal | The amount actually disbursed to you | RM 10,000 |
| Interest rate | Flat or reducing balance? | 12% p.a. on reducing balance |
| Tenure | Number of monthly instalments | 24 |
| Monthly instalment | Exact amount and due date | RM 470.73 |
| Total repayment | Instalment × months — the true price tag | RM 11,297.52 |
Then check the fee clauses
Look for stamp duty (required by law, stated upfront), late payment charges (how they're calculated and capped), and early settlement terms. With us: no processing fee, no hidden charges and no early settlement penalty — if a clause seems to contradict what you were told, ask before signing.
Your rights under the Moneylenders Act 1951
The law protects borrowers from licensed lenders in specific ways: the agreement must be in writing and properly attested, you are entitled to a copy of it, interest is capped by law, and the lender's licence number must be genuine and verifiable with KPKT. If any of these are missing, the "lender" may not be operating legally.
The final checklist
Right before you put pen to paper:
- No blank fields anywhere on the form
- Every fee itemised in black and white
- You've seen the full repayment schedule
- You keep a signed copy of the agreement
- You had time to think — a licensed lender never rushes you