TEKUN Loan Calculator Malaysia 2026
Calculate your TEKUN Niaga monthly repayment, total repayable amount, and disbursement amount after the management fund and mandatory savings deductions. This calculator uses the correct 4% flat rate method — not the reducing balance formula used for bank loans.
TEKUN Loan Calculator
Calculate your exact monthly repayment
Monthly Repayment
RM 1,000
4% flat rate
Total Interest
RM 10,000
Effective rate: ~1.6% p.a.
Total Repayment
RM 60,000
True Monthly Outflow (Including TEKUN Charges)
*Mandatory savings are returned to you after your loan is fully repaid.
We'll help you choose the right TEKUN scheme
How TEKUN Loans Differ from Bank Loans
TEKUN (Tabung Ekonomi Kumpulan Usaha Niaga) is a government microcredit agency under the Ministry of Entrepreneur Development and Cooperatives. Its loan structure is significantly different from commercial bank loans in three key ways:
1. Flat Rate, Not Reducing Balance
Banks calculate interest on the reducing outstanding balance — as you pay down principal, the interest charge decreases. TEKUN charges a 4% flat rate on the original loan amount for the entire tenure. On a RM100,000 loan over 5 years, you pay 4% × RM100,000 × 5 years = RM20,000 in total interest regardless of how much principal you have repaid. On a reducing-balance equivalent basis, this 4% flat rate is approximately 7.2% effective p.a.
2. Management Fund Deduction (4%)
When TEKUN approves your loan, they deduct a 4% management fund before disbursing the money. If you are approved for RM100,000, you receive RM96,000 in your account. However, your monthly repayment is calculated on the full RM100,000. This effectively adds another ~0.8% to your annualised cost, though it can be considered a service fee rather than interest.
3. Mandatory Savings (Tabungan Wajib, 5%)
TEKUN requires a mandatory savings deposit of 5% of the approved loan amount. For a RM100,000 loan, this is RM5,000. This amount is retained by TEKUN during the loan period and returned to you with profit-sharing (based on Islamic finance principles) when you fully repay the loan. It is not a fee — you get it back — but it does reduce your effective net disbursement from RM100,000 to RM91,000 (after 4% management fund and 5% savings).
TEKUN vs Bank Loan: Side-by-Side Comparison
| Feature | TEKUN Niaga | Bank SME Loan |
|---|---|---|
| Interest Method | Flat Rate (4% p.a.) | Reducing Balance (5%–8% p.a.) |
| Effective Rate (approx.) | ~7.2% p.a. | 5%–8% p.a. |
| Management Fee | 4% (deducted upfront) | 1%–2% processing fee |
| Mandatory Savings | 5% (returned at end) | None |
| Collateral Required | None (unsecured) | Often required |
| Max Loan Amount | RM200,000 | RM5,000,000+ |
| Eligibility | Bumiputera (primarily) | All Malaysians |
| Approval Speed | 2–6 weeks | 4–12 weeks |
For full details on TEKUN eligibility, required documents, and how to apply, read our TEKUN loan complete guide. For smaller amounts under RM50,000, also consider the MADANI loan calculator (3% flat rate, open to all Malaysians).
Need Help Applying for TEKUN?
Our advisors guide Bumiputera entrepreneurs through the TEKUN application process and can also identify alternative government schemes you may qualify for. Free consultation.