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Peer-to-Peer (P2P) Lending




Peer-to-peer lending is a type of direct lending where funds are given to people or businesses without the need of a formal financial institution to act as an intermediary. P2P lending is often carried out using online marketplaces that connect lenders and potential borrowers. By using this technique, borrowers can get loans without having to meet the stringent criteria set by banks. P2P lending platforms calculate interest rates based on the risk profile of the borrower. The purpose of P2P lending is to is to help build small businesses to unlock capital in small amounts from a pool of individual lenders. P2P enables businesses to borrow and investors to lend capital through online platforms registered with the Securities Commission Malaysia (SC).

Maximum Loan Amount 


Loan Term 

3 months to 36 months​

Interest Rates

9.6% - 18%


2 - 3 Weeks



Peer-To-Peer lending are definitely different with process compare to bank. With peer-to-peer lending, borrowers are matched directly with investors through a lending platform. You may quickly apply for P2P funding online, unlike most banks that need you to physically visit their branch before applying for a loan.


Investors get to see and select exactly which loans they want to fund. Peer-to-peer loans are most commonly personal loans or small business loans.


P2P lending websites connect borrowers directly to investors. Each website sets the rates and the terms and enables the transaction. Most platforms and websites will have a wide range of interest rates based on the creditworthiness of the applicant.

The steps below describe the general P2P lending process:

  1. A potential borrower interested in obtaining a loan completes an online application on the peer-to-peer lending platform.

  2. The platform assesses the application and determines the risk and credit rating of the applicant. Then, the applicant is assigned with the appropriate interest rate.

  3. When the application is approved, the applicant receives the available options from the investors based on his credit rating and assigned interest rates.

  4. The applicant can evaluate the suggested options and choose one of them.

  5. The applicant is responsible for paying periodic (usually monthly) interest payments and repaying the principal amount at maturity.

Advantages of P2P Lending Malaysia

Borrowers can benefit from P2P lending in a variety of ways, including lower interest rates, increased lending opportunities, a more transparent and efficient loan process, and faster loan approval times when compared to traditional financial institutions. P2P lending platforms make funding possible for businesses and no prepayment penalty on P2P lending platform.

Eligibility Criteria for P2P Platform Providers

Any person or entity that seeks to operate a P2P financing platform must apply to be registered as a P2P operator under the SC’s Guidelines. All P2P operators must be locally incorporated and have a minimum paid-up capital of RM5 million. A P2P operator must also adhere to the following:


  • Ensure there is an efficient and transparent risk-scoring system in place relating to the investment note or Islamic investment note.

  • Conduct a risk assessment on prospective issuers intending to use its platform.

  • Ensure the issuer’s disclosure document lodged with the P2P operator is verified for accuracy and made accessible to investors through the P2P platform.

  • Inform investors of any material adverse change to the issuer’s proposal.

  • Have in place processes or policies to manage any default by issuers, including using its best endeavours to recover outstanding amounts owed to investors.

  • Ensure that its rules set out a rate of financing that is not more than 18% per annum. A P2P operator must consult the SC if it wishes to impose a rate of financing that is more this stated rate.

Required Documents

You are required to provide business information such as nature of your business, contact details, paid-up capital, directors and shareholders information, etc. besides uploading a copy of your IC / passport and official business documents.


  Reason Why Apply with us

  1. We same as the Banker, but Banker just represents their bank, they only can help you to apply the loan from their own bank, and we do not belong to any bank.

  2. And most importantly, you save a lot of time and the hassle going from bank to bank and hence, we are the one stop centre for you.

  3. SMI Funding directly using through our network, based on your documents, qualification, nature of business, and other information, find out that which Commercial Bank having higher approval rate chances (Maybank, RHB, Ambank, Standard Chartered & etc) 90% approval rate helped the company successfully get the fund.

  4. Our consultant are commission based, hence they need to work closely with you and the banks until your loan is approved. If not, they won't get a single cent. We charge services charge based on the loan approved. No approval, no commission to be paid. Mean you are gurantee NO RISK

  5. After you’re funded, you and our consultant will work through a plan to get you better lending products in the future. When that time comes, we’ll be there to help you take the next step.

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