SME Loan Without Collateral Malaysia 2026
Many Malaysian SME owners don't have property or assets to pledge as collateral. The good news is there are multiple financing options that don't require security. Here's your comprehensive guide to unsecured business loans in Malaysia.
Quick Facts
Pro Tip
The key to getting unsecured financing is demonstrating strong cash flow and business performance. Banks and lenders focus heavily on your revenue and repayment capacity when collateral isn't available.
Bank Unsecured SME Loans
Banks Offering Clean Loans
| Bank | Max Unsecured Amount | Typical Rate | Min Revenue |
|---|---|---|---|
| Maybank SME2Go | RM250,000 | 6-12% p.a. | RM200K |
| Alliance BizSmart | RM500,000 | 6-10% p.a. | RM300K |
| CIMB BizFlex | RM500,000 | 6-9% p.a. | RM300K |
| Hong Leong SME | RM500,000 | 6-10% p.a. | RM300K |
| RHB Easy Biz | RM300,000 | 6-10% p.a. | RM250K |
| Public Bank SME | RM500,000 | 5.5-9% p.a. | RM300K |
Higher Rates
Unsecured loans typically carry higher interest rates (1-3% more) than secured facilities. This reflects the higher risk the lender takes without collateral.
Requirements for Bank Unsecured Loans
Typical Clean Loan Requirements
- Minimum 2-3 years in business
- Annual revenue RM200,000 - RM500,000+
- Profitable business (net profit positive)
- Clean CTOS/CCRIS record
- Good bank account transaction history
- No existing problem loans
How Banks Assess Unsecured Applications
Without collateral, banks focus on:
| Factor | What They Look For |
|---|---|
| Cash Flow | Consistent revenue, healthy bank balances |
| Profitability | Net profit margins, financial sustainability |
| Credit History | Clean CCRIS, no late payments |
| Business Age | Longer track record reduces risk |
| Industry | Lower-risk sectors preferred |
| Management | Experienced owners/directors |
Government Schemes Reducing Collateral
GGSM2 (Skim Jaminan Pembiayaan Perniagaan)
The government's 80% guarantee significantly reduces or eliminates collateral needs:
| Feature | Detail |
|---|---|
| Government Guarantee | Up to 80% of loan amount |
| Effect on Collateral | Many banks waive or reduce collateral |
| Loan Amount | Up to RM5 million |
| Through | 20 participating banks |
Pro Tip
GGSM2 is the best path to larger unsecured financing. The government guarantee makes banks comfortable lending without collateral for amounts up to RM500K-1M.
How GGSM2 Reduces Collateral:
- Government absorbs 80% of default risk
- Banks more willing to lend without security
- Approval based more on business viability
- Faster processing than fully-secured loans
CGC Schemes
Credit Guarantee Corporation offers various guarantee programs:
| Scheme | Coverage | Effect |
|---|---|---|
| Portfolio Guarantee | 70-80% | Reduces collateral |
| Direct Access Guarantee | Up to 90% | May eliminate collateral |
| Green Guarantee | 80% | For green businesses |
Microfinancing Without Collateral
TEKUN Nasional
Perfect for smaller financing needs without security:
| Feature | Detail |
|---|---|
| Amount | RM5,000 - RM100,000 |
| Collateral | None required |
| Guarantor | None required |
| Rate | 4% p.a. (subsidized) |
| Eligibility | Bumiputera entrepreneurs |
Amanah Ikhtiar Malaysia (AIM)
Microfinancing for lower-income entrepreneurs:
| Feature | Detail |
|---|---|
| Amount | RM1,000 - RM100,000 |
| Collateral | None |
| Model | Group lending |
| Focus | Women and rural entrepreneurs |
Bank Rakyat Micro
Cooperative bank microfinancing:
| Feature | Detail |
|---|---|
| Amount | RM5,000 - RM100,000 |
| Collateral | May be waived |
| Rate | 4-6% p.a. |
| Membership | Required (RM30) |
P2P & Fintech Unsecured Financing
Peer-to-Peer Lending Platforms
Licensed P2P platforms offer unsecured invoice financing and working capital:
| Platform | Max Amount | Typical Rate | Approval Time |
|---|---|---|---|
| Funding Societies | RM1,000,000 | 12-18% p.a. | 1-3 days |
| Fundaztic | RM500,000 | 10-24% p.a. | 1-3 days |
| Validus | RM2,000,000 | 12-18% p.a. | 1-3 days |
| Modalku | RM300,000 | 12-20% p.a. | 1-3 days |
| B2B Finpal | RM500,000 | 10-18% p.a. | 1-3 days |
Higher P2P Rates
P2P platforms charge higher rates (12-24% p.a.) compared to banks. Use these for short-term needs where speed matters more than cost.
Invoice Financing
Convert your receivables to cash without collateral:
| Feature | Benefit |
|---|---|
| Security | Your invoices are the "collateral" |
| Amount | Up to 80-90% of invoice value |
| Approval | Based on your customer's creditworthiness |
| Speed | Often same-day or next-day funding |
How to Qualify for Unsecured Financing
Build Strong Business Fundamentals
Strengthen Your Unsecured Application
- Maintain consistent revenue (avoid volatile swings)
- Keep profitable financial statements
- Build healthy bank account balances
- Pay all existing obligations on time
- Maintain clean CTOS/CCRIS record
- Document all business income properly
Optimize Your Credit Profile
| Action | Impact |
|---|---|
| Pay bills on time | Builds positive CCRIS history |
| Reduce existing debt | Improves debt-service ratio |
| Fix any CTOS issues | Remove approval blockers |
| Maintain bank balances | Shows financial stability |
Start Small, Build History
Path to larger unsecured facilities:
- Start with microfinancing - TEKUN, AIM (RM5K-100K)
- Graduate to small bank facilities - Credit cards, small overdrafts
- Build repayment track record - 12-24 months clean history
- Apply for larger unsecured loans - With proven creditworthiness
Comparing Unsecured Options
| Source | Amount Range | Rate Range | Approval Speed | Best For |
|---|---|---|---|---|
| Bank Clean Loans | RM50K-500K | 6-12% p.a. | 7-14 days | Established SMEs |
| GGSM2 | Up to RM5M | 5-8% p.a. | 14-28 days | Growing businesses |
| TEKUN | RM5K-100K | 4% p.a. | 7-14 days | Bumiputera SMEs |
| P2P Lenders | RM10K-2M | 12-24% p.a. | 1-3 days | Urgent needs |
| Invoice Financing | Per invoice | 12-18% p.a. | Same day | B2B businesses |
Industries That Get Unsecured Loans Easier
Some sectors have better unsecured financing approval rates:
| Industry | Why Easier |
|---|---|
| Healthcare/Clinics | Stable recurring revenue |
| F&B/Restaurants | Daily cash flow visible |
| Professional Services | Low overhead, good margins |
| Government Contractors | Reliable payment source |
| Education/Tuition | Subscription-like revenue |
Sectors That Face Challenges
| Industry | Why Harder | Solution |
|---|---|---|
| Construction | Project-based, variable | Contract financing |
| Trading | Inventory risk | Invoice financing |
| Manufacturing | Capital intensive | GGSM2, equipment lease |
| Retail | Competition, margins | Revenue-based financing |
Frequently Asked Questions
Frequently Asked Questions
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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