Two loans at the same 6% p.a. can cost different amounts. One deducts RM400 before you see the money, adds a takaful premium you didn't request and charges 3% to settle early; the other does none of that. The interest rate is what gets advertised. The fees are what you need to read. Here is every charge you can meet on a Malaysian personal loan, in the order you'll meet them.
The fee map, in order
| Fee | Typical amount | Who charges it | Legal basis / cap |
|---|---|---|---|
| Stamp duty | 0.5% of loan amount | Everyone — it's a tax | Stamp Act 1949: RM5 per RM1,000 on loan agreements |
| Processing / handling fee | RM0–RM200, or 1%–2% | Banks (often waived), some lenders | Must be disclosed in the product disclosure sheet |
| Attestation fee | Small, fixed | Licensed moneylenders | Prescribed under the Moneylenders Regulations |
| Credit insurance / takaful | 1%–3% of loan, one-off | Offered by banks; optional | Cannot be a condition of an unsecured loan |
| Late-payment charge | Bank: 1% p.a. on overdue amount; moneylender: up to 8% p.a. on sum in default | All lenders, only if you're late | BNM guidelines / Moneylenders Act |
| Early-settlement fee | RM0 to a few % of balance | Some banks; not Prime Credit | Contractual — check the clause |
| Restructuring / rescheduling fee | Usually waived on request | Banks | BNM expects fair treatment for borrowers in difficulty |
What RM30,000 over 60 months actually costs
Take a RM30,000 loan at 6% p.a. flat over five years and stack the fees on top of the interest.
RM9,000
Interest
6% × RM30,000 × 5 years (flat)
RM150
Stamp duty
0.5% — deducted at disbursement
RM100
Processing fee
If charged at all
RM9,250
Total cost of credit
≈ 30.8% of the amount borrowed, over 5 years
The fee that is always a scam
There is exactly one charge that no licensed lender in Malaysia will ever ask for: money before the loan is disbursed. 'Processing deposit', 'insurance to release funds', 'GST on the loan', 'agent commission', 'to show good faith' — the name changes, the pattern doesn't. Legitimate fees are deducted from your disbursement or added to your instalments. They are never a bank transfer you make first.
If someone has asked you for an upfront payment, stop and read our loan scam guide before sending anything. The second request always follows the first.
Four clauses to find before you sign
- 1
The disbursement line
Offer letter or product disclosure sheet: 'net amount disbursed'. It should equal the loan minus stamp duty and any stated fee — nothing else. If there's an insurance premium you didn't discuss, ask for it out.
- 2
The late-payment clause
Look for the rate and what it's applied to. Banks: 1% p.a. on the overdue instalment. Moneylenders: up to 8% p.a. on the amount in default — not on the whole loan.
- 3
The early-settlement clause
Is there a fee? Is the rebate on unearned interest stated (Rule of 78 or otherwise)? A loan with no settlement fee gives you a free option to get out early.
- 4
The variation clause
For flat-rate personal loans the rate should be fixed for the tenure. If the contract lets the lender vary the rate, ask under what conditions — it's unusual for this product.
Fee comparison: bank vs licensed moneylender vs Prime Credit
For a fuller view of how banks and licensed moneylenders differ beyond fees — speed, flexibility, who they say yes to — see our side-by-side comparison.
What you should expect to see
- Stamp duty at exactly 0.5%, shown as a line item.
- Processing fee stated in ringgit or as a percentage, with the net disbursement shown.
- Late charges within the legal cap, applied to the overdue amount only.
- A written early-settlement term — ideally no fee, always a rebate.
What should make you walk away
- Any payment requested before disbursement.
- Fees named 'admin', 'agent', 'release' or 'legal' with no basis in the disclosure sheet.
- Insurance bundled in without your consent.
- Late charges calculated on the full loan amount rather than the overdue sum.
Fees are where a 'cheap' loan becomes an expensive one and a fair loan proves itself. Prime Credit charges the statutory 0.5% stamp duty, no early-settlement penalty, and shows the net disbursement, the instalment and the total repayable on every offer. A rate check is a soft enquiry — you'll see all three numbers before deciding anything.
Quick questions
Why was less than the loan amount credited to my account?
Because stamp duty (0.5%) and any processing fee were deducted before disbursement. On RM30,000, that's RM150 stamp duty plus, say, RM100 processing — you receive RM29,750 but repay based on RM30,000. Legal, and it should be itemised in your offer letter.
Is loan insurance or takaful compulsory?
For unsecured personal loans, no. Lenders may offer credit-related insurance or takaful that covers the balance on death or disability; you're entitled to decline it. If the offer letter shows a premium you didn't agree to, ask for it to be removed.
Can a lender charge an early-settlement fee?
Banks may state one in the contract, though many waive it; the rebate on unearned interest still applies. Prime Credit charges no early-settlement penalty. Always check the clause before signing — it decides how expensive it is to change your mind.
What fees can a licensed moneylender legally charge?
Under the Moneylenders Act 1951 and its regulations, interest is capped at 12% p.a. for secured and 18% p.a. for unsecured loans, late interest at 8% p.a. on the defaulted amount, and only the stamp duty and attestation fee prescribed by the regulations. Anything else — 'admin', 'agent', 'release' fees — is not permitted.
