Land (i.e. real estate) is a good method to insure the amount borrowed. To do this, there are five steps: an agreement must be stamped under section 52 of the Stamp Act 1949 to be admissible as evidence in Malaysian courts. An agreement may be affixed within thirty days of its execution, if it is exported to Malaysia, or within thirty days of its first receipt in Malaysia, if it has been exported outside Malaysia. Under the law, an agreement is valid even if it is stamped late, provided that the party invoking the document in court pays the stamp duty and penalty to the National Revenue Board of Malaysia (see Malayan Banking Berhad v Agencies Service Bureau Sdn Bhd  1 MLJ 198). Sometimes borrowers fail to repay the amount borrowed. It may be that the borrower is difficult and uncooperative, or the borrower simply does not have money to repay the loan. Lenders can avoid these frustrations by ensuring that the borrower agrees to provide security in exchange for the loan. The types of securities described below are personal guarantees, land and shares.
The draft credit agreement begins with a clear list of the two parties to the loan and an interlocutor for them. It is clear that each party is filing this agreement of its own free will in order to obtain mutual benefit. It is clear that the parties are responsible for compliance with this credit agreement. When the loan is repaid, the draft loan agreement has a place where both parties can sign that the contract is concluded. In this way, both parties signed an agreement stipulating that the loan was concluded in case of future problems with the contractual conditions. Each template can be created individually, so each chord is individual. Among the options available, there are different fonts and colors to produce a high-quality final product if ever the agreement has to be defended in court. Yes, friendly loan agreements are legal in Malaysia. The parties can lend and even collect interest on the loan as long as the lender does not make loans „as an activity“. Only institutions with the required licences issued under the Moneylenders Act 1951 may carry out money lending operations as businesses.
If the borrower and the guarantor do not repay the loan, the borrower can take legal action against both the borrower and the guarantor to recover the credit. Although the lender has the right to sue both the borrower and the guarantor, the repayable amount is still only the outstanding amount of the loan. The lender cannot recover twice, as the result is what is called a „double recovery“ and the lender is unduly enriched. This step is quite self-explanatory, but it is also the most important step of all. A written agreement signed by both the lender and the borrower can significantly increase your chances in court in the event of default. Since the private credit agreement form is a legal and contractual agreement between two parties, it must contain detailed information about both parties as well as the particularities of the private loan for which the contract is concluded.. . .