Despite our best efforts, sometimes we find ourselves in a situation where we do need to borrow money, for a variety of legitimate reasons.<\/p>\n
While borrowing from banking and financial institutions is the most ideal solution, many people prefer to turn to moneylenders as an easier, more convenient alternative to borrowing money from the bank.<\/p>\n
However, you must be able to know how to tell the difference between the two, to avoid falling into a financial pitfall.<\/p>\n
In Malaysia, there are three legal sources for borrowing money – licensed financial institutions, cooperatives and licensed moneylenders.<\/p>\n
Besides these three main financial services providers, there are also unlicensed moneylenders, in other words loan sharks. They are illegal and you should never resort to borrowing from them.<\/p>\n
The following table illustrates what happens when you apply to borrow RM100 from a commercial bank as compared to getting a loan for the same amount from a credit community company.<\/p>\n\n