Yes. DuitNow and MYR are built into a Malaysian deployment as part of the implementation and tested by your team before go-live.
Malaysia · Loan management system
Loan management system for Malaysian banks and lenders
Schedules, repayments, balances and arrears for every active loan, with each payment posted once, collections working from the same record and the AI banking agent watching for early warnings.
In brief
What a loan management system does in Malaysia
A loan management system (LMS) runs the loan after booking: the schedule, payments, balances, arrears, collections, monitoring and statements.
Covenant Desk includes its own core banking engine for lending (loan accounts, ledger and postings, interest and fees, repayment and collections, disbursement) and integrates with the core banking system you already run, so you can adopt it as the lending core or run it beside your core. Collections are recorded and reviewable, which matters under rules such as Section 29B of the Moneylenders Act, with fines from RM50,000 to RM250,000 for harassment or violent collection. MYR, DuitNow and Malaysian reporting are built into your deployment.
Malaysia
What a Malaysian LMS has to get right
- 01
Interest computed as your product requires
Simple or reducing interest within the limits of your licence, and a running total per loan where a ceiling applies, such as total interest not exceeding the principal under the Moneylenders Act.
- 02
Payments posted once
DuitNow, bank transfer or cash, posted once, with the schedule, balance and reports updated from that entry.
- 03
Collections on the record
Every call, message and visit logged on the loan, with who made it and what was agreed, so collection practice can be reviewed.
- 04
Ageing by days past due
Arrears grouped into 1-30, 31-60, 61-90 and over 90 days, with amounts, so the team knows where to start.
- 05
Monitoring and early warnings
The AI banking agent watches accounts and covenants and raises early-warning flags with the evidence behind them.
- 06
Reports from the same postings
Collections, ageing and income built from the postings themselves, ready for your auditor and the returns your licence requires.
Covenant Desk
How Covenant Desk covers it
All of this is available, built to your operation and delivered as part of the implementation.
- 01
Schedules from the approved terms
Each loan carries its own repayment schedule, with paid and upcoming instalments, principal and interest balances and the next due date.
- 02
Repayments posted once
Staff post a repayment, or confirm a borrower's payment against the bank, and the schedule, balance and reports update from that one entry.
- 03
Arrears ranked
An ageing report by 1-30, 31-60, 61-90 and over 90 days past due, with the amount in each band and Excel export.
- 04
Borrower app
Borrowers see their balance, next due date and every instalment, and pay to your own account with a reference that ties the payment to the loan.
- 05
Covenants, collateral and monitoring
For business loans: covenants recorded and tested, breaches and waivers logged, collateral with haircuts and loan-to-value. The AI banking agent monitors accounts and raises early-warning flags.
- 06
Core banking engine
Covenant Desk includes its own core banking engine for lending: loan accounts, ledger and postings, interest and fees, repayment and collections, and disbursement. It also integrates with the core banking systems you already run, through APIs or file exchange, so you can adopt it as the lending core or run it beside your existing core.
- 07
Malaysia rules, currency and payments
Malaysia's rate and fee rules, currency, payment rail and document templates are built into your deployment as part of the implementation, and your team tests them on your own cases before go-live.
Evaluation
Questions to ask any LMS vendor in Malaysia
- 01
Show the ledger
Loan accounts, postings, interest and fees, and how they reconcile to your general ledger.
- 02
How is a DuitNow payment matched?
A reference that ties each payment to its loan, confirmed by staff against the bank.
- 03
Where are collection contacts recorded?
On the loan, with time, person and outcome, or nowhere?
- 04
Can we migrate in phases?
Existing loans, schedules and payment history, and who checks the import.
- 05
What does the audit log show?
Every posting and change, in a log that shows if anything was altered.
- 06
Can borrowers check their own balance?
A borrower app saves your staff the calls.
FAQ
Questions banks and lenders ask
Yes. Reports are produced from the loan records in the format each regulator requires, built from the return you file today.
Yes. Staff access is scoped by company, and one search finds a borrower across every company in the group.
You do. Each customer has a dedicated instance and receives a full export at the end of the contract.
Sources
Official sources, checked 29 October 2026
- Ministry of Housing and Local Government (KPKT), Malaysia: moneylending and pawnbroking
- Bank Negara Malaysia
- Personal Data Protection Department, Malaysia (PDPA 2010)
Rules change; check the current text with the regulator and your adviser. This page is not legal advice. Covenant Desk is software: it does not provide loans or make lending decisions.
Related
More for banks and lenders in Malaysia
See it on one of your own loans.
We set up a personalised demo around your own products and workflows, then your team tries it before you decide.
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