PUTRAJAYA: Those seeking financial assistance should only go to licensed moneylenders and never to Ah Long or loan sharks, says Nga Kor Ming.
The Housing and Local Government Minister said licensed moneylenders are governed by the Moneylenders Act 1951.
"Under the Act, interest rates for unsecured loans must not exceed 18% per annum and no more than 12% per annum for secured loans.
"The Act also prohibits licensed moneylenders or their representatives from visiting borrower's homes or workplaces to collect repayments," he said in a statement on Saturday (June 28).
He said that the public could also report any violation of the Act to his ministry or the police for action to be taken.
"The public is also advised to verify the status of licensed moneylenders by calling the ministry or with the i-Kredikom mobile application," he said.
Nga also urged the police to take firm action to put an end to loan sharks once and for all.
"Loan sharks or 'Ah Long' often take advantage of those in financial distress, trapping them in a violent debt cycle involving outrageous interest rates, harassment and violence," he said.
He said this in reference to a fire that destroyed three houses in Taman Tasek Gelugor, Penang, on Tuesday (June 24), which is believed to be linked to loan shark activity.
