Yes, as a dedicated deployment for banks and lenders with 50 or more staff. MYR, DuitNow, the BNM or KPKT rules that apply to you and your templates are built into the implementation, and your team tests it before go-live.
Malaysia · Loan origination system
Loan origination system for Malaysian banks and lenders
Applications, documents, credit assessment and approval on one record, so every loan you book has a file behind it that a regulator, an auditor or your own credit committee can follow.
In brief
What a loan origination system does in Malaysia
A loan origination system (LOS) takes a loan from application to booking: borrower details and documents, checks, the credit assessment, approval and the facility documents.
Covenant Desk is the AI lending system for banks and for lenders with 50 or more staff. An AI banking agent reads and extracts documents, builds the client profile, prepares the credit memo and facility letter and flags what is missing, and your credit officers approve. In Malaysia, banks are supervised by Bank Negara Malaysia (BNM), licensed lenders by the Ministry of Housing and Local Government (KPKT), and leasing, factoring and buy-now-pay-later providers by the Consumer Credit Commission under the Consumer Credit Act 2025. The platform is built to the regime each product sits in, with MYR, DuitNow and your templates, as part of the implementation.
Malaysia
What a Malaysian LOS has to get right
- 01
A credit file for BNM-supervised lenders
Banks and development financial institutions need the documents, spread, grading and approval trail behind every facility, and the borrower's CCRIS credit report on file.
- 02
Documents read once
Financial statements, bank statements, certificates and business registration documents are extracted by AI and the figures go to the right fields, each linked to its page and line.
- 03
Rules by regime and product
Where a product carries rate or fee limits, such as the Moneylenders Act caps of 12% a year secured and 18% unsecured for a licensed lending arm, they sit in the product set-up and are checked before the offer.
- 04
The right licence under the new Act
Leasing, factoring and BNPL providers need licences from the Consumer Credit Commission. Product set-up records which licence each product operates under.
- 05
Personal data under the PDPA 2010
MyKad numbers, income documents and bank statements are personal data: role-based access, masked identifiers and a record of every lookup.
- 06
English, Chinese and Malay
Staff screens and borrower documents in the languages your customers use, with Malay templates built into your deployment.
Covenant Desk
How Covenant Desk covers it
All of this is available, built to your operation and delivered as part of the implementation.
- 01
Intake
The borrower, directors, shareholders and guarantors in one case. Staff open cases or the borrower applies on your own online form; a secure upload link and a checklist collect the documents. Identity numbers are stored encrypted and shown masked.
- 02
Document extraction
OCR and AI document extraction read financial statements, bank statements, certificates, ID and business registration documents, and the figures go to the right fields, each linked to its page and line.
- 03
Assess
Financial spreading by period; DSCR, leverage and interest cover; bank-account analysis; a versioned 100-point scorecard in which missing evidence shows as unassessed.
- 04
AI banking agent
The AI builds and edits client profiles, prepares the credit memo and facility letter from your templates, summarises the file, schedules client and committee meetings and drafts communications. Every action is logged, permissioned and reviewable.
- 05
Decide
AI prepares the decision; your credit officers approve it, with approval limits by amount, escalation, four-eyes control on exceptions and a full audit trail.
- 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 LOS vendor in Malaysia
- 01
How are product rules enforced?
Before the offer is issued, or in a report afterwards?
- 02
Does it connect to CCRIS and CTOS?
Bureau reports should land on the case and the results should be recorded on the file.
- 03
Where is the data hosted?
Database, documents and backups, and whether anything leaves that region.
- 04
Can credit policy change without a release?
Thresholds and grade bands should be a policy table your credit team owns.
- 05
What does the AI do?
Look for an AI that reads, drafts, summarises and flags, with every action logged, and approval left to your credit officers.
- 06
How do we exit?
A full export and written confirmation of deletion.
FAQ
Questions banks and lenders ask
Yes. Bureau connections are built into your deployment, and the bureau report and its results are recorded on the credit file.
The product records which licence and product each loan falls under, and the rules for each product are built into your set-up. Check your own obligations under the Act with your adviser.
AI prepares the decision and your credit officers approve it, under four-eyes control, your approval matrix and a full audit trail.
Sources
Official sources, checked 29 October 2026
- Ministry of Housing and Local Government (KPKT), Malaysia: moneylending and pawnbroking
- Bank Negara Malaysia
- Bank Negara Malaysia: CCRIS, the Central Credit Reference Information System
- DFDL: a summary of Malaysia's Consumer Credit Act 2025
- 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.
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