Micro SME Loan Malaysia 2026
Micro SME loans provide small-scale financing for Malaysian entrepreneurs who need amounts below RM50,000. These loans are designed for micro enterprises, home-based businesses, market vendors, and small traders who may not qualify for traditional bank loans.
Malaysia has one of the most developed microfinancing ecosystems in Southeast Asia, with multiple government and private institutions offering accessible micro loans.
Micro SME Loan Overview
- Loan Range:
- RM1,000 to RM50,000
- Interest Rate:
- 4% - 18% p.a. (varies by lender)
- Collateral:
- Not required for most micro loans
- Approval Time:
- 1 day to 4 weeks
- Business Age:
- As low as 0 months (some schemes)
- Key Providers:
- TEKUN, AIM, BSN, fintech lenders
- Best For:
- Micro enterprises, hawkers, home businesses
- Repayment:
- Weekly, fortnightly, or monthly
Who Needs Micro Financing?
Micro financing is ideal for:
- Street vendors and market traders needing stock capital
- Home-based businesses requiring equipment or supplies
- Grab/food delivery entrepreneurs needing a vehicle or equipment
- Small retailers stocking up inventory
- Service providers (tailoring, beauty, repair) buying tools
- Online sellers funding initial inventory
- Agriculture smallholders purchasing seeds, fertiliser, livestock
- New entrepreneurs starting with minimal capital
Pro Tip
If you need less than RM50,000, micro financing is often faster and easier to obtain than traditional bank loans. Many micro lenders approve within days rather than weeks.
Top Micro Financing Options in Malaysia
1. TEKUN Nasional
The largest government microfinancing agency in Malaysia.
| Feature | Details |
|---|---|
| Loan Amount | RM1,000 to RM100,000 |
| Interest Rate | 4% p.a. (flat) |
| Collateral | Not required |
| Tenure | Up to 5 years |
| Eligibility | Malaysian citizens aged 18-65 |
| Application | TEKUN branches or e-TEKUN online |
Best for: All Malaysian entrepreneurs, especially those needing RM10,000-RM100,000 with no collateral.
See our detailed TEKUN guide for full information.
2. Amanah Ikhtiar Malaysia (AIM)
The pioneer of microfinance in Malaysia, following the Grameen Bank model.
| Feature | Details |
|---|---|
| Loan Amount | RM2,000 to RM50,000 |
| Interest Rate | 10% on declining balance (approx. 5% flat equivalent) |
| Collateral | Not required (group lending model) |
| Tenure | Up to 150 weeks (approximately 3 years) |
| Repayment | Weekly |
| Eligibility | Low-income households earning below RM3,860/month |
Best for: Low-income entrepreneurs needing small amounts with group support structure.
Group Lending Model
AIM uses group lending - you form a group of 5 borrowers who support each other. If one member defaults, the group is affected. This model provides peer support but also peer accountability.
3. Bank Simpanan Nasional (BSN) Micro Financing
Government-owned bank with dedicated micro products.
| Feature | Details |
|---|---|
| Loan Amount | RM1,000 to RM50,000 |
| Interest Rate | 4% - 8% p.a. |
| Collateral | Not required for amounts under RM10,000 |
| Tenure | Up to 5 years |
| Eligibility | Registered business owners |
| Application | BSN branches nationwide |
Best for: Small businesses wanting a formal banking relationship with reasonable rates.
4. SME Bank Micro Products
| Feature | Details |
|---|---|
| Loan Amount | RM5,000 to RM50,000 |
| Interest Rate | 5% - 8% p.a. |
| Tenure | Up to 5 years |
| Focus | Manufacturing, services, agriculture SMEs |
5. MARA Micro Credit (Bumiputera)
| Feature | Details |
|---|---|
| Loan Amount | Up to RM50,000 |
| Interest Rate | 4% p.a. |
| Collateral | Not required |
| Eligibility | Bumiputera entrepreneurs |
| Application | MARA state/district offices |
6. P2P Lending Platforms
Fintech micro lending for faster access:
| Platform | Amount | Rate | Approval |
|---|---|---|---|
| Funding Societies | RM3,000 - RM200,000 | 12% - 24% p.a. | 1-3 days |
| Fundaztic | RM5,000 - RM100,000 | 10% - 20% p.a. | 2-5 days |
| MicroLeap | RM3,000 - RM50,000 | 12% - 18% p.a. | 1-3 days |
Best for: Businesses needing very fast approval and willing to pay higher rates.
Higher Rates
P2P and fintech lenders charge significantly higher rates than government programs. Only use these if you need urgent funding and cannot wait for government program processing.
Comparison: All Micro Lending Options
| Lender | Min Amount | Max Amount | Rate | Approval Time | Collateral |
|---|---|---|---|---|---|
| TEKUN | RM1,000 | RM100,000 | 4% flat | 2-4 weeks | No |
| AIM | RM2,000 | RM50,000 | ~5% flat | 2-4 weeks | No |
| BSN | RM1,000 | RM50,000 | 4-8% | 1-2 weeks | Sometimes |
| SME Bank | RM5,000 | RM50,000 | 5-8% | 2-3 weeks | Sometimes |
| MARA | Up to RM50,000 | RM50,000 | 4% | 2-4 weeks | No |
| P2P/Fintech | RM3,000 | RM200,000 | 10-24% | 1-5 days | No |
Not sure which micro lender is best for you? We compare all options for free.
How to Choose the Right Micro Loan
Decision Guide
- Need under RM10,000? → Start with TEKUN Micro or AIM
- Need RM10,000-RM50,000? → TEKUN main scheme or BSN
- Need it in 1-3 days? → P2P platforms (higher rates)
- Bumiputera entrepreneur? → TEKUN or MARA (lowest rates)
- Non-Bumiputera? → TEKUN Teman or BSN (best rates)
- Low-income household? → AIM (income-based eligibility)
- Want banking relationship? → BSN or SME Bank
- Home-based business? → TEKUN Micro or AIM
Eligibility for Micro Loans
Most micro lenders have more relaxed requirements than banks:
Typical Micro Loan Requirements
- Malaysian citizen
- Aged 18-65 (some schemes up to 70)
- Have a business or viable business plan
- Valid ID (MyKad)
- Basic business registration (SSM or local authority)
- No bankruptcy status
- Clean TEKUN/AIM repayment record (if previous borrower)
Documents Needed for Micro Loans
Basic Documents
- Copy of MyKad (front and back)
- SSM registration or business license
- 2 passport-size photos
- 3 months bank statements (personal or business)
- Proof of business premises (rental agreement or utility bill)
- Simple business description or plan
Pro Tip
Micro loan applications require far fewer documents than bank loans. You typically do not need audited financial statements, tax returns, or detailed business plans.
Tips for Micro Loan Approval
Improve Your Chances
- Ensure your business is visibly active with evidence of operations
- Keep a clean personal financial record (no bounced cheques)
- Have a clear purpose for the loan funds
- If applying to AIM, form a reliable group of 5 members
- If you've had a previous micro loan, ensure it's fully repaid
- Attend any required entrepreneurship courses
- Be prepared for a site visit from the lending institution
- Start small - successful repayment opens doors to larger amounts
Growing Beyond Micro Loans
Micro loans can be a stepping stone to larger financing:
Year 1: Micro Start
- Start with TEKUN or AIM (RM1,000-RM10,000)
- Build repayment track record
- Grow your business revenue
Year 2: Scale Up
- Apply for larger micro loan (RM10,000-RM50,000)
- Open a business bank account
- Maintain proper financial records
Year 3+: Graduate to Bank Loans
- With 2+ years track record, apply for bank SME loans
- Access GGSM2 government guarantees
- Eligible for larger amounts (RM50,000 - RM5 million)
Frequently Asked Questions
Frequently Asked Questions
Need Larger Financing?
If your business has grown beyond micro loan limits, explore these options:
- SME Loan from Banks - RM50,000 to RM10 million
- GGSM2 Government Loan - Up to RM20 million with guarantee
- Working Capital Loan - Short-term operational financing
- Bank-Rejected Alternatives - Options if banks say no
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 the Best Micro Loan for Your Business
Not sure which micro financing option suits you? Our consultants compare all options and help you apply. Free advice, no obligation.