Open AccessFRIENDLY LOAN: A LEGAL STUDY IN MALAYSIA
Author(s) -
Hua Siong Wong
Publication year - 2021
Publication title -
international journal of law, government and communication
Language(s) - English
Resource type - Journals
ISSN - 0128-1763
DOI - 10.35631/ijlgc.626004
Subject(s) - loan , business , interest rate , finance , order (exchange) , financial services , accounting
Financial institutions licensed which were established under the Financial Services Act 2013 and the Moneylenders Act 1951 in Malaysia will provide financial loans at the interest rate charged permitted by-laws and guidelines from the Central Bank of Malaysia to borrowers. However, not all borrowers can afford to pay high and onerous interest rates. Therefore, the law in Malaysia allows for friendly loans, i.e. the lender will provide financial loans assistance to the borrower from of interest or with minimal interest rate. This study will focus on the extent to which the legal issues of the practice of friendly loans in Malaysia and whether the provisions of current laws and policies can protect the interests of both lenders and recipients of friendly loans. This study is qualitative in nature and involves library research. The results of this study will look at aspects of legal issues in order to protect the interests of both lenders and recipients of friendly loans. In fact, Malaysia could also consider creating a special law on friendly loans and regulated by the authorities.