SME Loan RM400,000 Malaysia 2026
A RM400,000 SME loan is mid-range territory — where collateral discussions become standard practice and documentation requirements step up significantly. Most banks will consider unsecured lending at this amount only for businesses with exceptional financials. For the majority of applicants, a GGSM2 or CGC government guarantee, or property collateral, is the path to approval at competitive rates. This guide covers all major lenders, collateral options, repayment estimates, eligibility, and the full application process.
Smaller need? See the SME Loan RM300,000 Guide. Need more? See the SME Loan RM500,000 Guide.
Which Banks Offer an SME Loan of RM400,000?
| Lender | Interest Rate | Collateral | Min. Operating History |
|---|---|---|---|
| Maybank Business Term Loan | From 4.5% p.a. | Property or CGC; clean for top profiles | 2–3 years |
| CIMB BizChannel | From 5.0% p.a. | Property or personal guarantee | 2–3 years |
| RHB BizPower | From 4.8% p.a. (property-secured) | Property preferred | 2–3 years |
| Public Bank SME | From 4.8% p.a. | Property or personal guarantee | 3 years |
| Hong Leong SMElite | From 5.2% p.a. | Property or CGC | 2–3 years |
| Alliance Bank BizSmart | From 5.5% p.a. | Property or personal guarantee | 2–3 years |
| AmBank SME | From 5.5% p.a. | Property or personal guarantee | 2–3 years |
| SME Bank (GGSM2 / SJPP) | From 5.0% p.a. | Government guarantee | 2 years |
| OCBC SME Financing | From 5.8% p.a. | Property or personal guarantee | 3 years |
Pro Tip
At RM400,000, a CGC/SJPP government guarantee is often the most cost-effective path if you lack sufficient property collateral. The GGSM2 scheme provides an 80% government guarantee on qualifying loans — reducing the bank's risk significantly and unlocking approval for businesses that would otherwise fall short on collateral value alone.
Who Typically Borrows RM400,000? (Use Cases)
| Business Type | Typical Use | Why RM400,000 Works |
|---|---|---|
| Manufacturing | Production line upgrade or expansion | Covers mid-range CNC, injection moulding, or packaging equipment |
| Property / construction | Project bridging finance | Covers sub-contractor mobilisation and materials for a medium-sized project |
| Wholesale / distribution | Large inventory purchase | Suitable for 4–6 containers of goods or bulk FMCG stock |
| F&B chain | Third or fourth outlet expansion | Full fit-out plus working capital for first 6 months of operations |
| Healthcare / clinic | Equipment purchase (dental, medical imaging) | Covers most specialist dental fit-outs or basic imaging equipment |
| Logistics | Fleet expansion (2–3 commercial vehicles) | Sufficient for lorry or van purchases plus working capital |
Collateral and Guarantee Options at RM400,000
At this loan size, lenders typically require one of the following arrangements:
- Property collateral — commercial or residential property with sufficient market value. Banks typically advance 70–85% of the valuation. A valuation fee (RM500–RM2,000) applies.
- GGSM2 / CGC government guarantee — the Geran Galakan Skim Modal 2 (GGSM2) or SJPP guarantee covers 80% of the loan amount, enabling approval without physical collateral for qualifying businesses. See the GGSM2 Loan Guide.
- Clean loan (exceptional profiles only) — a few banks (Maybank, CIMB) will consider RM400,000 without collateral for businesses with 3+ years of strong trading history, consistent revenue well above DSR requirements, and immaculate CCRIS records.
Eligibility Requirements for a RM400,000 SME Loan
Eligibility — RM400,000 SME Loan
- Business registered with SSM — Sdn Bhd strongly preferred for this amount
- Malaysian majority ownership (51%+)
- Minimum 2–3 years in continuous operation
- Monthly revenue of RM70,000–RM90,000+ (consistent over at least 12 months)
- Clean CCRIS — no defaults, no active legal actions against the company or directors
- Debt Service Ratio (DSR) below 60% after including this new loan obligation
- 2 years audited financial accounts (management accounts accepted at some banks for year 2)
- No outstanding tax arrears — LHDN compliance letter may be required
- Property collateral, CGC guarantee, or exceptional standalone financials
See the full eligibility checklist in the SME Loan Requirements Guide.
Estimated Monthly Repayment — RM400,000 SME Loan
Calculated on a reducing balance basis. Actual repayments depend on the bank's quoted rate and loan structure.
| Interest Rate | 3-Year Tenure | 5-Year Tenure | 7-Year Tenure |
|---|---|---|---|
| 6% p.a. | RM12,169 | RM7,733 | RM5,843 |
| 7% p.a. | RM12,351 | RM7,920 | RM6,037 |
| 8% p.a. | RM12,535 | RM8,111 | RM6,234 |
Use the SME Loan Calculator to model your exact monthly repayment at any rate and tenure.
Documents Required
Documents for RM400,000 SME Loan
- IC copies of all directors and shareholders
- SSM registration (Form 9, 24, 49 for Sdn Bhd)
- Latest 6 months business bank statements
- Latest 2 years audited financial accounts
- Latest 2 years income tax returns (Form C for Sdn Bhd)
- Business premises evidence (tenancy agreement, land title, or utility bills)
- Schedule of existing credit facilities and hire purchase agreements
- Property title and valuation report (if offering collateral)
- Management accounts dated within 6 months (if audited accounts are outdated)
How to Apply — Step by Step
- Pull your CCRIS report — free via BNM eCCRIS. Resolve any arrears, disputes, or missed payments before submitting applications.
- Prepare 2 years of audited accounts — at RM400,000, audited financials are expected by most banks. Management accounts alone may be insufficient.
- Decide on collateral strategy — assess whether you have qualifying property to pledge, or whether a CGC/GGSM2 government guarantee route is more appropriate for your profile.
- Apply to 2–3 banks simultaneously — using the Best Bank for SME Loan guide. Compare Letters of Offer on effective interest rate, not just headline rate.
- Engage a valuer (if using property) — your bank will appoint their own panel valuer. Budget RM800–RM2,500 for valuation fees.
- Credit committee review — at RM400,000, most banks require credit committee approval above relationship manager level. Allow 3–5 weeks.
- Sign Letter of Offer and drawdown — review all conditions precedent before signing. Funds disburse within 5–7 business days of full documentation.
Flat Rate: Interest calculated on original principal throughout. Higher effective rate.
Monthly Payment
RM 1,933
Total Interest
RM 15,997
Total Payment
RM 115,997
Free consultation, no obligation
Also See
- Smaller amount: SME Loan RM300,000 Guide
- Next tier up: SME Loan RM500,000 Guide
- Government guarantee: GGSM2 Loan Guide
Frequently Asked Questions
Frequently Asked Questions
Need Fast Approval While You Compare Options?
Pro Tip
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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.
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