Friendly Loans: Protecting and Recovering Your Money and Interest

This MWKA Online Talk was delivered on 20 May 2026 by Ms Sonia Mohanacomar and Mr Amir Nizam and moderated by Mr Jeromy Yan. Please visit https://mahwengkwai.com/talks-signup/ to register for upcoming talks. Overview: Friendly loans are common in SME and personal dealings, but poorly structured arrangements can create serious legal risks under Malaysian law. What appears informal may be challenged as unlicensed moneylending, affecting enforceability and recovery. This session focuses on three key areas: how lenders and borrowers can properly document friendly loans, how lenders can protect and recover their principal and interest, and how borrowers may resist claims based on illegality or excessive interest. Join us as we share practical, risk-focused insights on structuring enforceable agreements, avoiding common pitfalls, and navigating disputes when friendly loans go wrong. Talk points: ● Structuring Friendly Loans for Enforceability ● When a Loan Becomes Unlicensed Moneylending ● Interest, Profit and Excessive Returns ● Recovery Strategies and Defending Claims Speakers: Sonia Mohanacomar (Associate), Amir Nizam (Associate) Moderator: Jeromy Yan (Pupil In Chambers)