MADANI SME Loan 2026
The Malaysia MADANI framework introduced by Prime Minister Anwar Ibrahim includes significant SME financing initiatives aimed at strengthening Malaysia's small and medium enterprise ecosystem. Under Budget 2025/2026, the government has allocated over RM40 billion in SME financing facilities, guarantees, and support programs.
MADANI SME Financing Overview
- Total SME Allocation:
- RM50 billion (Budget 2026)
- SJPP Guarantees:
- RM30 billion
- BNM Special Funds:
- RM3.8 billion
- TEKUN/BSN Microfinancing:
- RM3.2 billion
- EXIM Bank Export Financing:
- RM10 billion
- Guarantee Coverage:
- Up to 90% for focus sectors
- Focus Areas:
- Green, high-tech, halal, healthcare
- Application:
- Through banks and government agencies
What is MADANI SME Financing?
MADANI (an acronym for Kemakmuran, Daya Saing, Inklusif, Kesejahteraan, and Inovasi) is the government's overarching economic framework. Under MADANI, several key SME financing programs have been introduced or enhanced:
- Enhanced GGSM2 - Increased guarantee ceiling to RM40 billion
- BNM Special Funds - Multiple sector-specific facilities
- TEKUN Enhancement - Additional RM1.6 billion allocation
- SME Digitalisation Grant - For technology adoption
- SME Export Financing - Dedicated export working capital
- Green Financing - For sustainable business initiatives
Pro Tip
MADANI is not a single loan product but a collection of government initiatives. The best approach is to identify which specific program fits your business needs. Our team can help match you to the right program.
Key MADANI Financing Programs
1. Enhanced GGSM (Government Guarantee Scheme MADANI)
The flagship SME guarantee scheme has been significantly expanded under GGSM2/GGSM3:
| Feature | Details |
|---|---|
| Total Guarantee Ceiling | RM30 billion via SJPP |
| Coverage | Up to 90% for focus sectors, 80% for others |
| Loan Amount | Up to RM20 million per SME (RM10 million cap for 90%) |
| Interest Rate | BLR + 2% cap |
| Participating Banks | 20 financial institutions |
| Guarantee Fee | 0.5% - 1% p.a. |
| Eligible Entities | SMEs and Mid-Size Companies (up to RM500M revenue) |
This is available through all major Malaysian banks. See our detailed GGSM2 guide for full information.
2. BNM Special Funds
Bank Negara Malaysia administers several special-purpose funds:
SME Automation & Digitalisation Facility (ADF)
| Feature | Details |
|---|---|
| Amount | Up to RM5 million |
| Rate | Up to 5% p.a. |
| Tenure | Up to 10 years |
| Purpose | Automation, digitalisation, modernisation |
Green Technology Financing Scheme (GTFS)
| Feature | Details |
|---|---|
| Amount | Up to RM100 million |
| Rate | Subsidised (2% government rebate) |
| Tenure | Up to 15 years |
| Purpose | Green technology and sustainable business |
SME Revitalisation Financing Facility
| Feature | Details |
|---|---|
| Amount | Up to RM500,000 |
| Rate | 3.5% - 5% p.a. |
| Tenure | Up to 7 years |
| Purpose | Business recovery and growth |
3. TEKUN & BSN Microfinancing
Microfinancing Under MADANI
- RM3.2 billion combined allocation (TEKUN + BSN)
- TEKUN main scheme: Up to RM100,000 at 4% flat rate
- Teman TEKUN: For non-Bumiputera (up to RM100,000)
- Youth scheme: For entrepreneurs aged 18-35
- BSN Micro: Up to RM150,000 for small traders
- New digital application process (e-TEKUN)
- Expanded coverage for B40, OKU communities
See our detailed TEKUN guide for full application process.
4. SME Corp Programs
| Program | Amount | For |
|---|---|---|
| SME Digitalisation Grant | Up to RM5,000 | Digital adoption |
| Market Access Grant | Up to RM300,000 | Export development |
| Tunas Usahawan Belia (TUB) | Up to RM20,000 | Young entrepreneurs |
| Enrichment & Enhancement Programme | Varies | Business upgrading |
5. MARA Business Financing
For Bumiputera entrepreneurs:
| Program | Amount | Rate |
|---|---|---|
| MARA Business Loan | Up to RM500,000 | 4% p.a. |
| MARA Micro Credit | Up to RM50,000 | 4% p.a. |
| MARA Technology Financing | Up to RM1 million | Varies |
Want to know which MADANI program fits your business? Get a free assessment from our financing specialists.
Budget 2026 SME Highlights
Key announcements affecting SME financing:
Budget 2026 SME Measures
- RM40 billion GGSM2 guarantee ceiling (enhanced from previous allocations)
- Continued BNM special fund allocations for SME financing
- Tax incentives for SMEs with revenue under RM50 million
- RM1.6 billion for TEKUN microfinancing
- New focus on digital economy, green economy, and halal industry
- Support for women entrepreneurs through dedicated programs
- Export assistance and market access support
- Skills training and upskilling programs for SME workforce
How to Access MADANI Financing
Step 1: Identify Your Needs
| If You Need... | Best Program | Where to Apply |
|---|---|---|
| Working capital under RM100K | TEKUN | TEKUN branch or e-TEKUN |
| Bank loan with guarantee | GGSM2 | Any participating bank |
| Digitalisation funding | BNM ADF | Through commercial banks |
| Green business financing | GTFS | Through commercial banks |
| Export financing | EXIM Bank | EXIM Bank Malaysia |
| Micro enterprise grant | SME Corp | SME Corp website |
Step 2: Prepare Your Application
Standard Documents Required
- SSM registration (Form 9, 24, 49 or business profile)
- Business license from local authority
- MyKad copies of directors/owners
- 6 months business bank statements
- Latest 2 years financial statements
- Business plan or proposal
- Specific documents for the chosen program
Step 3: Apply Through the Right Channel
- Bank loans (GGSM2, BNM funds): Apply at any participating commercial bank
- TEKUN: Apply online at e-TEKUN portal or TEKUN branches
- SME Corp grants: Apply through the SME Corp website
- MARA: Apply at MARA state or district offices
Step 4: Follow Up
Government programs may have longer processing times. Follow up regularly and ensure all documents are complete to avoid delays.
Limited Allocations
Government financing programs have limited allocations that may run out. Apply early when new programs are announced. Some programs operate on a first-come, first-served basis.
Eligibility Overview
Most MADANI SME programs require:
General Eligibility Criteria
- Malaysian-owned business (51%+ Malaysian shareholding)
- Registered with SSM or relevant authority
- Annual revenue under RM50 million (SME definition)
- Employees under 200 (manufacturing) or 75 (services)
- Not listed on Bursa Malaysia
- Good credit standing (no NPL status)
- Operating business with valid licenses
For the complete eligibility checklist and required documents, see our SME Loan Requirements Guide.
Frequently Asked Questions
Frequently Asked Questions
Get Expert Help Navigating MADANI Programs
The number of available programs can be overwhelming. Our team specialises in matching Malaysian businesses to the right financing:
- Free program assessment - We evaluate which MADANI programs fit your business
- Application support - Help with documentation and submission
- Bank matching - Connect you with the right financial institution
- Alternative options - If government programs don't fit, we find other solutions
Disclaimer: Interest rates, loan amounts, and eligibility requirements shown are indicative and subject to change. Contact the respective bank or institution directly for the latest rates and terms. Last reviewed: January 2026.
Find Your MADANI Financing Match
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