Answer the Most Common Questions Around P2P Lending in Malaysia

1. Answer the Most Common Questions Around P2P Lending in Malaysia Arranging funds in Malaysia from a traditional bank is a cumbersome and tedious process. Especially for people falling under low-income groups or who do not have anything to submit as collateral. Whether sourcing cash for personal reasons or business purpose, there is always a hard toil for Malaysians including the Islamic community to source funds right on time. But with the rising penetration of P2P lending in Malaysia, there is a ray of hope for borrowers to acquire quick funds in no time. For this reason, we will be looking at a few common queries regarding this type of financing. So, let’s get started. 1. What is P2P Financing? P2P is peer-to-peer financing is a well-established and popular fiscal concept in Malaysia. Under this, borrowers can directly contact the individual lenders to ask for the loan at a smaller interest rate and a short-term period. 2. Who Can be Borrowers? Borrowers can be anyone who belongs to and live in Malaysia including the Islamic individual who requires of instant funds at cost-effective rates. 3. Who are Lenders? Lenders are generally individuals who earn passive income and interested in helping needy people source funds quickly. 4. Is this Legal in Malaysia? Yes, it is legal in Malaysia which is regulated by the Securities Commission Malaysia (SC) in 2016. 5. How Safe is the Personal Information? The personal information you share on the P2P lending platform is kept in safe and confidential hands without exposing it to any third party. Such sites are highly protected using fully encrypted features and firewalls. 6. What Different Types of Financial Offers Available? There are three types of offers available for people in Malaysia. One is to source funds for starting a small business or expanding the existing one to become self-sufficient. The second is to get low- income group insurance for meeting any uncertain circumstance with ease. And, thirdly is to invest a small number of funds to get a higher return on investments. 7. What is the Duration of Loan? The tenure of the loan varies between 1 month to 60 months depending on the borrowing capacity of the borrowers.

2. 8. Who can Invest in an Investment Note? Investment opportunities are available for all types of investors who can limit their exposure to a maximum of RM 50,000 on any investment note. Conclusion Queries regarding peer-to-peer lending in Malaysia will never be limited. The above-mentioned ones are most common and important for you. All the more important is to clarify certain doubts related to Shariah-compliant investment and responsibly invest according to the Shariat law of Muslim to gain a substantial amount of profit.