Best Small Business Loans

Whether you are looking to expand your business, finance your small and medium enterprise (SME), or kickstart your new business venture, these SME loans can be a good way to fulfill your short-term financing needs. We have listed these business loans in Malaysia to choose from.

To start your application, simply click the Apply button on the business loan best suited for your funding needs. Our friendly customer care agents will reach out to assist you with your application.

In the meantime, learn more about the requirements, application process, and other important details by reviewing the frequently asked questions section below.

• What is a business loan, and how is it different from a personal loan?

  A business loan is financing provided to a registered business for purposes such as working capital, expansion, or equipment purchases. Unlike personal loans, business loans are assessed based on company performance, require more documentation, and may offer larger amounts and longer tenures.

• What is an SME loan and what does SME loan mean?

  An SME loan is financing designed for Small and Medium Enterprises in Malaysia. It provides funds for business growth, working capital, or asset purchases. SME loans are tailored for businesses that meet SME definitions under Bank Negara Malaysia’s guidelines.

• What can SME loans be used for?

  SME loans can be used for day-to-day working capital, business expansion, purchasing inventory, buying machinery or equipment, and funding marketing activities. Some government-backed loans may restrict usage to specific purposes like technology adoption or export growth.

• Who is eligible for a business loan in Malaysia?

  Most banks require your business to be registered in Malaysia, with at least 1–3 years of operating history, steady cash flow, and acceptable credit records. Eligibility also depends on your business entity type (sole proprietorship, partnership, or Sdn Bhd).

• How much can I borrow, and what are the typical loan tenures?

  Loan amounts vary by lender but usually range from RM50,000 up to RM5 million. Tenures can run from 1 year to 7 years, depending on the bank, loan type, and your business profile.

• How do you qualify for an SME loan?

  To qualify, your business must be registered in Malaysia, have a stable income history, and meet the bank’s minimum operating period (commonly 1–3 years). Lenders also consider your credit history, debt service ratio, and supporting collateral or guarantors.

• How can you apply for a business loan?

  You can apply by submitting your documents online through a bank’s website, via loan comparison platforms like iMoney, or by visiting a branch. The process usually involves filling in an application form, providing financial documents, and waiting for the bank’s credit assessment.

• What documents do I need to apply for a business loan?

  You’ll typically need your business registration documents, NRIC of directors/owners, latest 6–12 months bank statements, financial statements or audited accounts, and income tax filings. For companies, banks may also request Forms 9, 24, and 49.

• What interest rates should I expect for a business loan?

  Interest rates vary widely depending on the lender, the loan amount, and the business risk profile. Typical SME loans in Malaysia carry effective rates starting around 4%–8% per annum, with options for both fixed and variable rates.

• How long does it take to get approved and disbursed?

  Processing times differ by lender. Some digital SME loans or bank fast-track products can be approved in a few hours, while traditional bank loans may take several days to weeks due to credit checks and document reviews.

• How can I improve my chances of business loan approval?

  Maintain healthy cash flow, separate your business and personal finances, prepare complete financial statements, file taxes on time, and provide a clear business plan. Good credit records and collateral also increase approval chances.

• Do I need collateral or guarantors for a business loan?

  Some loans are unsecured and do not require collateral, especially for smaller amounts. Larger financing often requires collateral such as property, machinery, or fixed deposits, and many banks also ask for personal guarantees from directors.

• What fees should I expect when applying for a business loan?

  Beyond interest, lenders may charge processing fees, stamp duty, late payment penalties, and in some cases, early settlement charges. Always review the fee schedule before signing your loan agreement.

• Can I apply for more than one business loan at the same time?

  It is possible, but approval depends on your business cash flow and debt service ratio. Having multiple loans may increase financial risk, so lenders will carefully assess your repayment capacity.

• Can I settle my business loan early?

  Yes, most banks allow early settlement. However, some loans come with early repayment penalties or require advance notice. Check your loan terms for any exit fees before making lump-sum payments.

• Can startups (less than 1 year old) apply for a business loan?

  Most banks require at least 1–3 years of operating history, so startups under one year may not qualify for standard business loans. However, microfinance lenders, government grants, and P2P financing platforms sometimes accept younger businesses.

• Why do SME loans in Malaysia get rejected?

  Common reasons include incomplete documentation, insufficient operating history, weak cash flow, poor credit history, or lack of collateral. Some applications are also rejected if the business is in a high-risk industry or fails to meet the bank’s internal criteria.

• What happens if I miss a repayment?

  Missing a payment may result in late fees, higher interest, and a negative impact on your business and personal credit profile. Repeated defaults could trigger legal action or collateral seizure if the loan is secured.

• What risks are associated with SME loans?

  Risks include repayment burden during slow business periods, variable interest rate fluctuations, and potential collateral loss if the loan is secured. Failure to repay can also hurt both the business and the owner’s personal credit standing.

• Can foreigners or foreign-owned businesses apply for business loans in Malaysia?

  Yes, but requirements are stricter. Foreign-owned entities often need to be locally incorporated and may face higher collateral demands. Approval is typically subject to additional documentation and bank policies.

• Are government or SME Bank financing schemes available?

  Yes. Programs backed by Bank Negara Malaysia, SME Bank, or Credit Guarantee Corporation (CGC) help SMEs access affordable financing with partial guarantees. These schemes often have easier collateral requirements and preferential rates.