MADANI Loan Calculator 2026
Calculate your exact monthly repayment, total interest cost, and SJPP guarantee fee for any MADANI-era government guarantee scheme. Switch between GGSM, WCGS-Women, WCGS-Bumiputera, WCGS-Startup, and compare side-by-side with TEKUN.
How MADANI Loan Interest Works (vs TEKUN)
Many borrowers confuse MADANI/GGSM interest rates with TEKUN's flat rate. They work completely differently:
GGSM MADANI: Reducing Balance
Banks charge interest on the remaining balance each month. As you pay down the principal, your interest portion shrinks. This is called the Effective Interest Rate (EIR).
Example: RM200,000 at 7% EIR over 5 years
- Month 1: Interest on RM200,000 = RM1,167
- Month 30: Interest on RM110,000 = RM642
- Month 60: Interest on RM3,900 = RM23
- Total interest paid: RM37,665
TEKUN: Flat Rate
TEKUN calculates interest on the original loan amount for the entire tenure. You pay the same interest even after repaying most of the principal.
Example: RM100,000 at 4% flat over 5 years
- Interest = RM100,000 × 4% × 5 years = RM20,000
- Same interest regardless of how much you've repaid
- Effective rate: ~7.2% EIR (much higher than the headline 4%)
Which Is Cheaper?
| Loan Amount | TEKUN (4% flat) | GGSM (7% EIR) | Difference |
|---|---|---|---|
| RM50,000 / 5yr | Total: RM60,000 | Total: RM59,416 | GGSM saves RM584 |
| RM100,000 / 5yr | Total: RM120,000 | Total: RM118,833 | GGSM saves RM1,167 |
| RM100,000 / 7yr | Total: RM128,000 | Total: RM126,725 | GGSM saves RM1,275 |
| RM100,000 / 10yr | Total: RM140,000 | Total: RM139,330 | GGSM saves RM670 |
Surprising truth: A bank loan at 7% EIR is actually slightly cheaper than TEKUN at 4% flat for the same amount and tenure. Add TEKUN's hidden costs (management fund + mandatory savings), and the gap widens further. However, TEKUN has zero collateral and easier approval — which may be worth the cost premium.
MADANI Loan Interest Rate: What to Expect in 2026
GGSM does not have a fixed interest rate. Each bank sets its own rate based on your risk profile. The maximum allowed under the scheme is BLR/BFR + 2%.
| Bank Category | Typical Rate Range | BLR/BFR (Feb 2026) | Your Likely Rate |
|---|---|---|---|
| Major banks (Maybank, CIMB, Public Bank) | BFR + 1.0% to 1.5% | ~6.5% | 7.5% – 8.0% |
| Mid-tier banks (Alliance, AmBank, Affin) | BFR + 1.0% to 2.0% | ~6.5% | 7.5% – 8.5% |
| Islamic banks (Bank Muamalat, MBSB) | BFR + 1.0% to 2.0% | ~6.5% | 7.5% – 8.5% |
| Focus sectors (Green, Halal, Tech, Healthcare) | BFR + 0.5% to 1.5% | ~6.5% | 7.0% – 8.0% |
How to negotiate a better rate:
- Apply to 2-3 banks simultaneously — use competing offers as leverage
- Focus sector businesses get 90% guarantee (vs 80%) — banks see lower risk, may offer lower rates
- Strong financials (2+ years profitable, clean CCRIS) command better pricing
- Existing banking relationship gives you negotiating power
SJPP Guarantee Fee Explained
The guarantee fee is a cost many borrowers don't factor in. It's paid upfront upon loan approval:
| Scheme | Guarantee Fee | On RM200K / 5yr | Guarantee Coverage |
|---|---|---|---|
| GGSM MADANI | 1.0% p.a. | RM10,000 total | 80% |
| GGSM Focus Sectors | 1.0% p.a. | RM10,000 total | 90% |
| WCGS-Women | 0.75% p.a. | RM7,500 total | 70% |
| WCGS-Bumiputera | 0.75% p.a. | RM7,500 total | 80% |
| WCGS-Startup | 0.75% p.a. | RM7,500 total | 70% |
| TEKUN | None | RM0 | N/A (direct govt loan) |
Note: The 2% interest rate rebate previously available for WCGS schemes has been discontinued. The guarantee fee is the only SJPP cost remaining.
Quick Repayment Tables (No Calculator Needed)
RM100,000 at 7% EIR (Typical GGSM Rate)
| Tenure | Monthly | Total Interest | Total Repayment |
|---|---|---|---|
| 1 year | RM8,653 | RM3,833 | RM103,833 |
| 2 years | RM4,477 | RM7,455 | RM107,455 |
| 3 years | RM3,088 | RM11,158 | RM111,158 |
| 5 years | RM1,980 | RM18,833 | RM118,833 |
| 7 years | RM1,509 | RM26,725 | RM126,725 |
| 10 years | RM1,161 | RM39,330 | RM139,330 |
RM200,000 at 7% EIR
| Tenure | Monthly | Total Interest | Total Repayment |
|---|---|---|---|
| 3 years | RM6,175 | RM22,316 | RM222,316 |
| 5 years | RM3,960 | RM37,665 | RM237,665 |
| 7 years | RM3,017 | RM53,450 | RM253,450 |
| 10 years | RM2,322 | RM78,660 | RM278,660 |
RM500,000 at 7% EIR
| Tenure | Monthly | Total Interest | Total Repayment |
|---|---|---|---|
| 3 years | RM15,438 | RM55,790 | RM555,790 |
| 5 years | RM9,901 | RM94,064 | RM594,064 |
| 7 years | RM7,543 | RM133,626 | RM633,626 |
| 10 years | RM5,805 | RM196,651 | RM696,651 |
RM1,000,000 at 7% EIR
| Tenure | Monthly | Total Interest | Total Repayment |
|---|---|---|---|
| 3 years | RM30,877 | RM111,579 | RM1,111,579 |
| 5 years | RM19,802 | RM188,127 | RM1,188,127 |
| 7 years | RM15,086 | RM267,253 | RM1,267,253 |
| 10 years | RM11,611 | RM393,302 | RM1,393,302 |
RM5,000,000 at 7% EIR
| Tenure | Monthly | Total Interest | Total Repayment |
|---|---|---|---|
| 5 years | RM99,012 | RM940,635 | RM5,940,635 |
| 7 years | RM75,432 | RM1,336,263 | RM6,336,263 |
| 10 years | RM58,054 | RM1,966,509 | RM6,966,509 |
TEKUN vs GGSM: Which Should You Choose?
| Factor | TEKUN | GGSM MADANI |
|---|---|---|
| Rate type | 4% flat (~7.2% EIR) | 6.5-8.5% EIR |
| Maximum amount | RM100K (Niaga) | RM20M |
| Collateral | None | Reduced (80% guaranteed) |
| Approval speed | 3-6 weeks | 4-8 weeks |
| Documentation | Minimal | Full financial statements |
| Hidden costs | 4% mgmt + 5% savings | SJPP 1% guarantee fee |
| Facility types | Term loan only | Term loan, OD, revolving, trade |
| Best for | Micro/small, first-time | Established, scaling |
Decision rule: If you need ≤RM100K and don't have strong bank financials → TEKUN. If you need >RM100K or want flexible facility types (overdraft, revolving) → GGSM via bank.
Soalan Lazim / FAQ
Berapa kadar faedah pinjaman MADANI?
Kadar faedah GGSM MADANI ditetapkan oleh bank, bukan kerajaan. Had maksimum ialah BLR/BFR + 2%. Pada Februari 2026, kebanyakan peminjam mendapat kadar antara 7% hingga 8.5% setahun (kadar efektif). Ini berbeza daripada TEKUN yang mengenakan 4% kadar tetap (flat rate), yang bersamaan dengan ~7.2% kadar efektif.
Does the guarantee fee reduce my interest rate?
No. The SJPP guarantee fee (1.0% for GGSM, 0.75% for WCGS) is a separate cost paid to the government guarantee company. It does not reduce your interest rate. It makes the bank more willing to approve your loan by reducing their risk. Think of it as an insurance premium that enables your loan approval.
Can I use this calculator for Islamic financing (GGSM-i)?
Yes. Islamic financing under GGSM-i uses a profit rate structure (Murabahah/Tawarruq) that produces similar monthly payments to conventional loans at the same rate. The calculator's reducing balance method approximates Islamic financing closely. For exact Islamic financing calculations, consult your bank's Shariah-compliant product disclosure sheet.
What is the maximum I can borrow across all SJPP schemes?
The aggregate group limit across all SJPP schemes (GGSM, WCGS, ADGS, etc.) is RM50 million. For individual schemes: GGSM up to RM20M, WCGS-Women up to RM10M, WCGS-Bumiputera up to RM3M, WCGS-Startup up to RM1M. Sole proprietors are capped at RM1M across all schemes.
Why is my bank quoting a different rate than the calculator?
Banks price loans based on individual risk profiles. The calculator uses a default 7% EIR as a common benchmark. Your actual rate depends on: business age, profitability, collateral, industry sector, existing banking relationship, and CCRIS history. Adjust the rate slider to match your bank's quote for accurate calculations.
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Related Tools & Guides
- TEKUN Loan Calculator — Dedicated TEKUN calculator with scheme selector
- MADANI SME Loan Guide — Full GGSM eligibility & application guide
- MADANI Loan RM100K — All RM100K options compared
- MADANI Loan RM200K — Navigate the RM200K financing gap
- MADANI Loan for Women — WCGS-Women + HERpower guide
- MADANI Loan for Chinese — CapBay BERKAT + TEKUN PMKS
- Eligibility Checker — Check what you qualify for
Calculator uses standard amortisation (reducing balance) for bank loans and flat rate formula for TEKUN. SJPP guarantee fees calculated at published rates. Actual bank interest rates vary by institution and borrower profile — rates shown are estimates for illustration. Verify with your bank before making financial decisions. Last updated: February 2026.