Loan Comparison Calculator Malaysia 2026

Why Comparing Loan Offers Matters

Malaysian banks compete intensely for SME business, and the headline rate you are quoted is rarely the full story. A bank offering 5.5% p.a. with a 2% processing fee may cost more in total than a bank offering 6.0% p.a. with no processing fee — especially on a short-tenure loan.

This calculator helps you compare the actual cost of two loan offers over their full tenure. The most important number is total interest paid, not the monthly instalment. A lower instalment may simply mean a longer tenure, which means more total interest over the life of the loan.

Look at EIR, Not Just the Headline Rate

The Effective Interest Rate (EIR) is the true annual cost of a loan expressed on a reducing-balance basis. Malaysian banks are required to disclose EIR in their product term sheets under BNM guidelines. Always compare EIR when evaluating loan offers:

• A 5% flat rate = approximately 9.5% EIR on a 5-year loan
• A 4% flat rate (TEKUN) = approximately 7.2% EIR
• A 3% flat rate (MADANI) = approximately 5.5% EIR

For dedicated TEKUN and MADANI calculators that handle flat-rate schemes correctly, use our TEKUN Loan Calculator and MADANI Loan Calculator.

What Else to Compare Beyond the Interest Rate

Two loans with identical interest rates can still have very different total costs depending on:

• Processing fee: Typically 1%–2% of the loan amount, deducted from disbursement. On a RM500,000 loan, a 2% processing fee is RM10,000 upfront.
• Stamp duty: 0.5% on the loan agreement. Mandatory and identical across all lenders.
• Early settlement penalty: 1%–3% if you repay in full before the agreed tenure, usually applicable in the first 3 years. Relevant if you plan to refinance.
• Credit Takaful / MRTA: Some banks require credit life insurance, adding 0.5%–1% to effective cost. Others make it optional.
• Collateral requirements: Secured loans have lower rates but require property or equipment as collateral. Unsecured loans are faster to process but carry higher rates.

For a full side-by-side comparison of Malaysian banks' SME loan products, visit our bank comparisons hub.

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