SME Loan Calculator Malaysia 2026: Monthly Repayment & Full Schedule

How to Use This Calculator

Enter your desired loan amount, expected interest rate, and loan tenure to see your estimated monthly payments. Choose between reducing balance (most bank loans) or flat rate calculations.

1. Loan Amount: Enter the amount you wish to borrow (RM50,000 - RM20,000,000)
2. Interest Rate: Enter the annual interest rate offered by your bank (typically 4-10% for SME loans)
3. Loan Tenure: Select your preferred repayment period (1-7 years for most SME loans)
4. Payment Type: Choose reducing balance (standard bank loans) or flat rate

Understanding Your Results

Monthly Payment

This is the fixed amount you'll pay each month throughout the loan tenure. For reducing balance loans, this includes both principal and interest, with the interest portion decreasing over time.

Total Interest

The total cost of borrowing over the entire loan period. Lower interest rates and shorter tenures result in less total interest paid.

Effective Interest Rate (EIR)

The true cost of the loan when calculated on a reducing balance basis. Flat rate loans have a higher EIR than quoted. For example, a 5% flat rate equals approximately 9.5% EIR.

Reducing Balance vs Flat Rate

Typical SME Loan Rates in Malaysia

For a full rate comparison across all major banks, compare SME loan rates before finalising your application. If your financing needs are under RM100,000, explore micro loan options from TEKUN, AIM, and BSN with lower government-subsidised rates. For TEKUN loan details, note that TEKUN uses a 4% flat rate, which differs from the reducing balance method used by most banks.

SME Bank Loan Repayment Schedule (Sample Tables)

SME Bank Malaysia (Bank Perusahaan Kecil & Sederhana Malaysia) uses a reducing-balance method for most term loans. The tables below show monthly repayment amounts at a typical 6% p.a. rate — for the full schedule at every rate from 4% to 8% p.a., see our dedicated SME Bank loan repayment schedule guide. Use the calculator above to match your exact quoted rate.

Monthly Repayment at 6% p.a. (Reducing Balance)

How SME Bank Calculates Repayment

SME Bank uses the standard amortisation formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P = principal, r = monthly interest rate (annual ÷ 12), and n = total months. In the first few months, most of your payment goes to interest; as the balance reduces, more goes to principal. Request a full amortisation schedule from SME Bank when you receive your offer letter — it will break down principal, interest, and outstanding balance for every single month.

Business Loan Calculator Malaysia: What to Watch Out For

• Flat vs reducing rate: A 5% flat rate is roughly equivalent to a 9.5% effective (reducing balance) rate. Always ask which method your bank uses.
• Processing fees: Most Malaysian banks charge 1–2% of the loan amount as a one-time processing fee. This is deducted from your disbursement.
• Stamp duty: 0.5% of the loan amount (can be financed into the loan).
• Early settlement fee: Some banks charge 1–3% if you settle within the first 3 years.
• Takaful/insurance: Credit life insurance may be mandatory for unsecured loans — add 0.5–1% to your effective cost.

Calculator for Government Schemes

Government-backed schemes often have different pricing structures:

• TEKUN loan calculator: 4% flat rate + 4% management fund + 5% compulsory savings. Use this calculator by entering ~7.2% as the effective rate.
• Madani SME loan calculator: BSN Mikro MADANI at 3% flat rate, up to RM50,000 for 5 years.
• GGSM2 calculator: Bank rate minus ~1% subsidy (effective 4.5–6% p.a.) with up to 80% government guarantee on the principal.