Welcome to microLEAP. Would you like to Raise Funds or Become a P2P Investor?
Who can become a P2P Investor on microLEAP?

As long as you pass our Anti-Money Laundering (AML) Combating the Financing of Terrorism (CFT) and other Due Diligence checks, then you may be a Peer-to-Peer (P2P) Investor on microLEAP’s platform. You may be an individual or a corporate and we allow Malaysian and non-Malaysians to participate.

How do I apply to be a P2P Investor?

All you have to do is to apply online on your PC, laptop or mobile phone. We will need to verify your identity by uploading your IC or Passport (if you are non-Malaysian) and if your a corporate, we need to verify your company by uploading its constitutive documents.

Constitutive documents include Form 9, 24, 44 and 49 for Companies and Certificate of Registration for LLPs.

For document upload: clear pictures or scanned copies will suffice.

How do I top-up my Available Balance?

Simply go to your ‘My Profile’ section and under ‘My Portfolio’, choose ‘Add to Available Funds’.

You can pay via our:

  1. Payment Gateway by choosing ‘Online Transfer (Billplz)’ or
  2. Pay manually by choosing ‘Bank Transfer’ so that you can top-up via Cash Deposit, Cheque or Bank Transfer (you will need to upload a receipt for this).
What is the microLEAP League of Extraordinary Investors?

By investing in any of our Investment Notes, you automatically join the League of Extraordinary Investors and you earn points as you rise through the ranks of Rookie, Apprentice, Champion and Sifu.

Monthly cash prizes are up for grabs for the top 2 investors of that particular month and there will also be Annual Grand Prize winners for 1st, 2nd and 3rd place at the end of the year.

Please see the link for more info: https://www.microleapasia.com/invest/league/

How much can I invest and can I retract my investment?

The minimum amount you can invest is RM50 per Investment Note.

The maximum you can invest in is RM50,000 per Investment Note.

If you are a Retail Investor, the Securities Commission of Malaysia (SC) highly encourages you to limit your investments to RM50,000 on each P2P Financing platform.

Should you change your mind, you have 24 hours to retract your investment by simply clicking ‘Retract Investment’ in your profile page.

What is an Investment Note?

An Investment Note is issued by the Issuer (a business that wants to raise funds) and allows you to invest into that business.

The Investment Note is a debt instrument and a legal document that serves as an IOU from an Issuer to a P2P Investor. It details the obligation for an Issuer to repay its P2P Investors the principal amount and interest payments on a monthly basis.

What is a Sophisticated Investor vs. a Retail Investor?

A Sophisticated Investor is a High Net Worth Individual, a High Net Worth Entity or an Accredited Investor.

As a Sophisticated Investor, you may invest in any issuer hosted on microLEAP and shall not be subjected to any restriction in respect of your investment amount. Please click on the link below to see if you qualify as a sophisticated investor:

SC Appendix_Qualifying criteria of Sophisticated Investors

A Retail Investor is everybody else. In order to manage your risk exposure, the SC highly encourages all Retail Investors to limit their investments to RM50,000 on each P2P Financing platform. By limiting your exposure per platform, you may further diversify the risk of default across multiple platforms.

What is the best way to diversify my risk?

Though we thoroughly credit score our Issuers, there is always an element of default risk when it comes to investing in the P2P Financing market. Therefore, microLEAP encourages all investor to diversify their risk. This is done by investing in as many Investments Notes as possible for a given amount of funds. For example, if you have RM5,000 to invest, you get a better diversification of risk by investing that amount into 10 Investment Notes of RM500 each than it is to invest the whole RM5,000 into 1 Investment Note.

It is also prudent to invest in Investment Notes of different credit risk ratings rather than only investing in very risky Notes that provide higher returns.

What is the Auto Invest function?

Our Auto Invest function on our platform allows our P2P Investors to be one of the first in queue when a new Investment Note gets listed on the Funding List. This allows our Issuers to raise their funds much quicker and allows our P2P Investors” funds to be put to work as soon as possible. It”s a win-win for everyone.

The process is very simple. As a P2P Investor, all you have to do is go to your profile page and set the criteria that best fits your risk appetite, such as maximum amount, credit risk rating, tenor, industry and state. We highly encourage that you do not set the maximum amount per Investment Note too high so that a diversification strategy of spreading your investments over many Notes are still achieved.

We will send you an email confirmation once an auto-investment has been filled and you have 24 hours to reject the investment.

What is credit risk rating?

All Investment Notes are given a credit risk rating using our proprietary credit risk engine. It helps P2P Investors make an informed decision and weigh up the risk in investing in a specific note.

Here are our credit risk ratings:

  • Low Risk: LR1 – LR3
  • Medium Risk: MR4 – MR7
  • High Risk: HR8 – HR10

Please look at the Credit Rating description on each Investment Note to understand the differences in our ratings.

How is my investment (loan) repaid?

Issuers repay principal plus interest of the amount invested by you in equal monthly instalments. Your repayments will be credited into your Available Balance where you can then reinvest in other Notes should you feel the need.

P2P Investors are given a schedule of your monthly returns with the date and amounts clearly spelled out.

What if my Investment Note goes to 'Default'?

Despite all precautionary actions, as well as recovery measures taken to protect our Investors; which includes, but not limited to, constant reminder communication with the Issuer by our collections team, licensed debt recovery agent following up with the said Issuer, legal notices sent by solicitors, as well as listing the Issuer’s name as in default on Experian (Credit Reporting Agency); the Issuer may not make good on their payments.

microLEAP will then classify said Investment Note as in ‘Default’.

Once an Investment Note has been classified as ‘Default’, microLEAP will outsource the collection of monthly payments to a licensed Debt Recovery Agent, who will demand and seek to recover the total outstanding balance through proper channels.

In the event the Issuer agrees to pay in full / partially, or is willing to restructure the outstanding amount due, we will ensure the payments will be transferred accordingly to the respective Investor Trust Account’s Available Balance.

We would like to emphasise that all P2P Investments comes with some element of default risk, so we duly recommend all Investors to diversify your Investment Portfolio in order to mitigate this risk.

We have already seen positive signs of Issuers restarting payments through this method, though this may take some time.

Please go to the Homepage under ‘Statistics’ to see microLEAP’s current Default Rate

How is Default Risk Mitigated?

Credit processes have now been tightened to minimise defaults, including tighter Debt Service Ratio (DSR), Profitability and Guarantor requirements

All Issuers must now have Standing Instructions (SIs) for their monthly commitments to microLEAP

For Invoice Financing, payment by the Paymaster / Offtaker must be to a joint bank account jointly controlled by microLEAP

Why are all Issuers provided microinsurance?

All Issuers, be it the applicant or alternative key person, will have Personal Accident insurance up to the outstanding loan amount provided by microLEAP via our Insurance Partner.

So in the case of accidental death or total / partial disablement, our Insurance Partner will cover the outstanding loan amount and microLEAP will arrange the pay out to all P2P Investors.

This ensures that as a P2P Investor, you can take comfort that your investment is insured should there be an accident to the Issuer’s key person.

For more information head on over to our microinsurance tab

Why does microLEAP use Trust Accounts?

microLEAP, being a platform that matches Issuers with P2P Investors, is in the process of handling client funds. In that respect, it is very important for client funds to be segregated and separate from microLEAP’s own funds so that both sets of funds never intermingle. To ensure this happens, microLEAP has appointed a Trustee to be the custodian of client funds.

Added to that, microLEAP also has separate trust accounts for Islamic funds and Conventional funds, so that Islamic funds are kept in Shariah-compliant trust accounts.

What are microLEAP's fees?

microLEAP charges you an Investor (Arrangement) Fee in order for us to match your investment with an Issuer.

Investor (Arrangement) Fees are 2% and are charged on a one-off basis. Depending on the points acquired as per microLEAP’s League of Extraordinary Investors, you may work towards lower fees the more you invest.

Investor (Arrangement) Fees are deducted from the first monthly payment. After that, you will receive your monthly interest / profit payments in full.

What are microLEAP's withdrawal fees?

microLEAP charges a withdrawal processing fees of only RM1 which will be charged for each withdrawal (such as IBG, FPX)

If I am a non-resident investor, is there withholding tax?

Malaysia applies a 15% withholding tax (WHT) to all non-resident on interest earned. You are exempt from this tax or the tax may be reduced if your country of residence has a tax treaty with Malaysia.

As a non-resident, we will deduct 15% on any interest earned on your investment which will be paid out to our Inland Revenue Board (IRB).

If you believe that you are exempt from WHT, please contact the microLEAP team.

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