Taking a personal loan Malaysia is not desirable for anybody. But since our lives are so dependent on money, we can be in a situation where we could need a personal loan Malaysia. The situation can vary from person to person. Many need a personal loan for immediate reasons like paying rent, paying a debt, renovating the house, personal events, or medical emergencies. Others need a long-term personal loan Malaysia for buying property, such as a new house or a car, or finance their children’s education.
The rest might need a loan to start a business, grow an existing business, or keep it afloat. May we never are in such a state, but we should know the options where we can look for help if we ever are. There are many options to get a personal loan Malaysia. You can get a personal loan Malaysia from a bank, a licensed money lender or other financial institutions. We will discuss why choosing a licensed money lender is the best option for a personal loan Malaysia and distinguishing between a licensed money lender and an unlicensed money lender in Malaysia.
Before we go into the technicalities, let’s learn the difference between a licensed money lender and an unlicensed one. A licensed money lender would be everything that is mentioned below, and a licensed one would be none of the things mentioned below. These things will distinguish between unlicensed and licensed money lender and give you reasons why go for a licensed money lender in the first place.
1. Registered With the Government:
A licensed money lender has to get registered with the government to get his license which acts as his work permit. To be registered, a licensed money lender has to become a part of the government’s database. Why is being registered with the government so important? Read further to find out.
2. Regulated By The Government:
Since a licensed money lender is registered with the government, he is also regulated by the government. By regulation, we mean a certain set of rules or standards of operations that the government has set for a licensed money lender for giving a personal loan Malaysia. The only way for a licensed money lender is to operate under those laws and restrictions; otherwise, his license will be revoked, and he will face the consequences of violating the law.
3. Accountability By The Government:
The government makes the set of rules or laws that we mentioned earlier to safeguard the rights and interest of the citizens who need a loan. These laws range from having lenient conditions to avoid scam and forgery. If a licensed money lender violates the law, he is registered in the government’s database and can hence be tracked. Once tracked, a licensed money lender can be held accountable for the crime he committed while giving you a personal loan Malaysia.
All these privileges are only available if you operate under the law and avail of the government’s safety by registered money lenders. The government still does crackdown against unlicensed money lenders. It might help if you get scammed by one but, it is your responsibility to make sure that you only take a personal loan Malaysia from a licensed money lender and avoid an unregistered one.
There are a number of obvious ways that you can turn to in order to distinguish between an unlicensed money lender and a licensed money lender for your personal loan Malaysia.
1. Check with the Government:
The litmus test to check a licensed money lender is to find him in the government’s database. Thanks to information technology, you can do it easily on your own. Just go to the relevant ministry’s official website and search for licensed money lenders. You should be able to see a list of all the licensed money lenders, and you would be able to see if yours is mentioned in there or not.
2. Ways of Advertisement:
Another rule of thumb to spot an unlicensed money lender is to pay attention to the ways they advertise. According to the government’s policy, a licensed money lender can only advertise for a personal loan Malaysia on what he owns, such as his business website and in and outside of his business’s premises. If a money lender advertises for a personal loan Malaysia through means like text messages, phone calls, flyers or any other below the line advertising mediums which are not on his website or office, be sure that he is an unlicensed money lender and you are about to get scammed.
Don’t trust him and avoid responding to the calls or messages.