Unlicensed moneylending is a serious issue and it has long existed in Malaysia. In Malaysia, moneylending is governed under the Moneylenders Act 1951 (as updated in 1st May 2015). There are huge numbers of moneylenders in Malaysia including Sarawak. As such, it is not a surprise that there are thousands of ways or methods used by those unlicensed moneylenders to advertise their businesses in Sarawak. Commonly, unlicensed moneylenders advertise their businesses by giving name cards and leaflets with some attractive rate of interest and even cashback voucher to increase their business profits. Some even put their advertisement in public places especially in market places and shop lots.  So are they allowed to charge interest for money lending or loans to their family members or friends? The law has strictly prohibited unlicensed moneylender to charge even a cent from our friends and family. Even though the public know it is illegal to get loans from them, they would still take the risk because of taking into account factors such as the urgency of situations and the process to get loans or money is easier than licensed moneylender or banks. Pursuant to Section 2 of Moneylenders Act 1951 (as updated in 1st […] read more