Government Schemes

Government Business Loans Malaysia 2026: All Schemes Compared

Malaysia offers some of Asia’s most comprehensive government SME financing — from GGSM2 guarantees to TEKUN micro-loans. This hub compares every major scheme so you can find the right one for your business.

Versi Bahasa Malaysia

6+

Schemes covered

RM20M

Max financing

2% p.a.

Lowest rate

Some have none

Min collateral

Scheme Comparison at a Glance

All figures as of 2026. Rates and limits subject to change — verify with lender before applying.

SchemeMax AmountRateEligibilityBest For
GGSM2 Government LoanRM20 millionFrom 4% p.a.2+ years in business, SSM-registered
Established SMEs
MADANI SME LoanRM500,000From 3.5% p.a.Malaysian SMEs, various categories
All SME segments
TEKUN Nasional LoanRM100,0004% p.a. flatMalaysian citizens, sole proprietors
Sole proprietors & traders
Micro Financing MalaysiaRM50,000From 2% p.a.Micro enterprises, low income
Micro businesses & hawkers
Halal Certification LoanRM200,000From 3.5% p.a.Muslim-owned or Halal-intent businesses
F&B, Manufacturing
ESG Green FinancingRM5 millionFrom 3% p.a.Green project compliance required
Manufacturing, Property, Energy

Frequently Asked Questions

Which government loan is easiest to get approved for in Malaysia?

TEKUN Nasional is generally the easiest — it targets sole proprietors and micro businesses with minimal documentation. For slightly larger amounts, BSN Micro MADANI also has flexible criteria. Bank-backed government schemes like GGSM2 have stricter requirements but offer much higher amounts.

What is the difference between GGSM2 and MADANI SME Loan?

GGSM2 is a government guarantee scheme (not a direct loan) where the government guarantees up to 80% of your bank loan, reducing the bank's risk and making approval easier. The MADANI SME Loan is a direct financing facility with subsidised interest rates under the MADANI economic agenda. Both can be used together in some cases.

Can I apply for multiple government loan schemes at the same time?

Generally, no — most government-backed schemes restrict simultaneous applications. However, you can apply for a government guarantee scheme (like GGSM2) alongside a working capital facility. Always disclose existing government financing when applying.

Do government business loans in Malaysia require collateral?

It depends on the scheme. TEKUN and micro-finance schemes are typically collateral-free. GGSM2 reduces (but doesn't eliminate) collateral requirements. Larger government-linked bank loans may still require property or fixed-deposit collateral for amounts above RM500,000.

Not Sure Which Government Scheme to Apply For?

Our consultants specialise in government-backed SME financing. We’ll match you to the right scheme and handle the paperwork — free of charge.