SME Loan Calculator Malaysia 2026
Calculate your monthly loan payments, total interest, and see how different loan amounts and tenures affect your repayments.
Flat Rate: Interest calculated on original principal throughout. Higher effective rate.
Monthly Payment
RM 1,933
Total Interest
RM 15,997
Total Payment
RM 115,997
Free consultation, no obligation
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.
- Loan Amount: Enter the amount you wish to borrow (RM50,000 - RM20,000,000)
- Interest Rate: Enter the annual interest rate offered by your bank (typically 4-10% for SME loans)
- Loan Tenure: Select your preferred repayment period (1-7 years for most SME loans)
- 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
| Feature | Reducing Balance | Flat Rate |
|---|---|---|
| Interest Calculation | On remaining principal | On original principal |
| Total Interest | Lower | Higher |
| Common Usage | Bank SME loans | Hire purchase, some financing |
| Early Settlement | More savings | Less savings |
Typical SME Loan Rates in Malaysia
| Loan Type | Interest Rate | Tenure |
|---|---|---|
| Bank SME Term Loan | 4.5% - 8% p.a. | 1-7 years |
| Government Scheme (GGSM2) | 5% - 7% p.a. | 1-10 years |
| SME Bank | 5% - 8% p.a. | 1-7 years |
| P2P Lending | 12% - 24% p.a. | 3-24 months |
Ready to Apply?
Get a personalized quote based on your business profile. Free consultation, no obligations.