MADANI Loan Calculator Malaysia 2026

Calculate your BSN Mikro MADANI monthly repayment and total interest. This calculator uses the correct 3% flat rate method used by BSN — not the reducing balance formula used for standard bank loans.

Loan AmountRM 200,000.00
RM50K – RM20.0M
Tenure5 years
1 – 10 years (or until 31 Dec 2035, whichever earlier)
Effective Interest Rate (EIR)7.0% p.a.
Typically BLR/BFR + 1% to 2%. As of Feb 2026, expect 6.5%–8.5% for most SMEs.
Monthly Instalment
RM 3,960.24
True monthly outflow: RM 4,126.91 (incl. fees)
Total Interest
RM 37,614.38
Total Repayment
RM 237,614.38
Principal + interest
SJPP Guarantee Fee
RM 10,000.00
1% p.a. × 5 yrs
Total True Cost
RM 247,614.38
Everything you pay
Gov't Guarantees
RM 160,000.00
80% of principal
ℹ️ How the 80% Government Guarantee Works
SJPP guarantees RM 160,000.00 of your RM 200,000.00 loan to the bank. This means the bank's risk is only RM 40,000.00. You pay a 1% annual guarantee fee (RM 2,000.00/year) upfront at approval. The guarantee does NOT reduce your loan obligation — you still repay the full amount.

About BSN Mikro MADANI

BSN Mikro MADANI is a government-subsidised microloan offered through Bank Simpanan Nasional (BSN) under the Malaysia MADANI economic framework. It is one of the most accessible and affordable business loan products in Malaysia, targeting micro and small business owners who may not qualify for standard bank term loans.

Key Features of BSN Mikro MADANI

  • Interest rate: 3% per annum flat rate (approximately 5.5% effective interest rate on a reducing-balance basis)
  • Maximum loan amount: RM50,000
  • Maximum tenure: 5 years (60 months)
  • Collateral: Not required (unsecured)
  • Eligibility: All Malaysian citizens 18–60 years old, business registered in Malaysia for at least 6 months
  • Disbursement: Typically within 7–14 working days after approval

3% Flat Rate: What It Means in Ringgit

Unlike bank loans which use reducing balance (interest on outstanding principal), BSN Mikro MADANI uses a flat rate — meaning interest is calculated on the original loan amount throughout the entire tenure.

For a RM50,000 loan over 5 years:

  • Total interest (flat rate method) = RM50,000 × 3% × 5 years = RM7,500
  • Total repayable = RM50,000 + RM7,500 = RM57,500
  • Monthly repayment = RM57,500 ÷ 60 months = RM958.33 per month

This makes MADANI one of the cheapest financing options available in Malaysia. For comparison, the same RM50,000 at 6% p.a. reducing balance over 5 years would cost approximately RM8,000 in total interest with a monthly payment of around RM967 — slightly higher per month but more expensive in total.

MADANI vs TEKUN vs Bank Loan

FeatureBSN Mikro MADANITEKUN NiagaBank SME Loan
Rate3% flat (~5.5% eff.)4% flat (~7.2% eff.)5%–8% reducing
Max AmountRM50,000RM200,000RM5,000,000+
Max Tenure5 years5 years7–10 years
CollateralNot requiredNot requiredOften required
EligibilityAll MalaysiansBumiputera (primarily)All Malaysians
Min. Operating Period6 monthsNone2–3 years

For amounts above RM50,000, consider the TEKUN calculator (up to RM200,000) or our general loan repayment calculator for bank loans. For a full guide on BSN MADANI loan eligibility and the application process, visit our MADANI loan guide.

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