SME Loan PRIHATIN 2026
The PRIHATIN economic stimulus packages were introduced by the Malaysian government to support businesses and individuals impacted by economic challenges. Since 2020, multiple PRIHATIN-related financing schemes have been rolled out to help SMEs maintain operations, retain employees, and recover from economic disruption.
PRIHATIN SME Financing Overview
- Total Allocation:
- RM10+ billion across all phases
- Interest Rate:
- 3.5% - 4% p.a. (subsidised)
- Loan Amount:
- RM50,000 to RM500,000 (varies by scheme)
- Tenure:
- Up to 5.5 years (including moratorium)
- Moratorium:
- 6 months payment deferment
- Guarantee:
- 80% government guarantee via SJPP
- Target:
- Micro enterprises and affected SMEs
- Application:
- Through participating banks and agencies
What is PRIHATIN SME Financing?
PRIHATIN (meaning "caring" in Malay) encompasses several government economic packages designed to provide financial relief to Malaysian businesses. The key SME financing components include:
- PRIHATIN Special Grant (GKP) - Direct cash grants of RM3,000-RM9,000 for micro enterprises
- PRIHATIN SME Soft Loan - Low-interest loans through Bank Simpanan Nasional and SME Bank
- Special Relief Facility (SRF) - RM1 billion fund for SMEs at subsidised rates
- All-Economic Sector Facility (AES) - Additional financing for all business sectors
- Micro Credit Scheme - Small loans for micro entrepreneurs via TEKUN and AIM
Pro Tip
PRIHATIN schemes have largely evolved into MADANI initiatives under Budget 2024-2026. See MADANI SME Loan for current programs. The information below covers the original PRIHATIN schemes and their successor programs.
PRIHATIN SME Soft Loan Details
Through Bank Simpanan Nasional (BSN)
| Feature | Details |
|---|---|
| Loan Amount | RM50,000 to RM100,000 |
| Interest Rate | 3.5% p.a. (government subsidised) |
| Tenure | Up to 5.5 years |
| Moratorium | 6 months |
| Collateral | Not required |
| Guarantee | 80% by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) |
Through SME Bank
| Feature | Details |
|---|---|
| Loan Amount | RM50,000 to RM500,000 |
| Interest Rate | 3.5% p.a. |
| Tenure | Up to 5.5 years |
| Moratorium | 6 months |
| For | All sectors including services, manufacturing, agriculture |
Eligibility Requirements
Who Can Apply for PRIHATIN SME Financing?
- Malaysian-owned business (minimum 51% Malaysian shareholding)
- Registered with SSM (Companies Commission of Malaysia)
- Annual revenue not exceeding RM10 million (for most schemes)
- Business in operation for minimum 6 months
- Not a company listed on Bursa Malaysia
- Not under receivership, winding up, or bankruptcy
- Demonstrate business impact from economic challenges
- Clean loan repayment record (no NPL status)
Micro Enterprise Definition
For PRIHATIN Special Grant (GKP) purposes, micro enterprises are defined as:
| Business Type | Annual Revenue | Employees |
|---|---|---|
| Manufacturing | Below RM300,000 | Less than 5 |
| Services & Others | Below RM300,000 | Less than 5 |
PRIHATIN Special Grant (GKP)
The GKP was a direct cash grant (not a loan) for micro enterprises:
Phase 1 (GKP 1.0): RM3,000 per eligible micro enterprise Phase 2 (GKP 2.0): RM3,000 additional Phase 3 (GKP 3.0): RM3,000 additional Phase 4 (GKP Prihatin Rakyat): Up to RM9,000
Grant vs Loan
GKP is a grant (hibah) that does not need to be repaid. However, the PRIHATIN Soft Loans through BSN and SME Bank are loans that require full repayment with interest. Make sure you understand the difference when applying.
Current Status & Successor Programs
The original PRIHATIN packages have largely been disbursed. However, the government continues subsidised SME financing under:
MADANI Budget Initiatives
- Continued allocation for SME financing
- New funds through BNM special facilities
- Enhanced GGSM2 guarantee schemes
BNM Special Funds
- SME Automation & Digitalisation Facility (ADF) - Up to RM5 million at reduced rates
- Green Technology Financing Scheme (GTFS) - For green businesses
- SME Emergency Relief Financing (SERF) - For businesses facing temporary difficulties
Ongoing Government Programs
- TEKUN Nasional - Microfinancing up to RM100,000
- GGSM2 - Government guarantee scheme
- SME Bank programs - Various sector-specific financing
Not sure which current government scheme you qualify for? Our team tracks all active programs.
How to Apply
Step 1: Determine Which Scheme Fits
Based on your business size, sector, and needs, identify the most suitable program.
Step 2: Prepare Documents
Required Documents
- SSM registration documents
- Copy of business license
- MyKad copies of all directors/owners
- 6 months bank statements
- Latest financial statements or management accounts
- Proof of business impact (revenue decline documentation)
- Business recovery plan
- Employee records (for employee retention schemes)
Step 3: Apply Through Designated Channels
- BSN Soft Loan: Apply at BSN branches or online
- SME Bank: Apply through SME Bank branches
- BNM Special Funds: Apply through participating commercial banks
- GGSM2: Through any of the 20 participating financial institutions
Step 4: Approval & Disbursement
Government-backed schemes typically process faster than commercial loans. Expect 1-3 weeks for soft loan approvals.
PRIHATIN vs Other Government Schemes
| Feature | PRIHATIN Soft Loan | GGSM2 | TEKUN |
|---|---|---|---|
| Max Amount | RM500,000 | RM20 million | RM100,000 |
| Interest Rate | 3.5% | BLR + 2% | 4% flat |
| Collateral | No | Sometimes | No |
| Business Age | 6 months | 1+ year | Flexible |
| Best For | Affected SMEs | Growth financing | Micro entrepreneurs |
Frequently Asked Questions
Frequently Asked Questions
Still Looking for Business Financing?
Even if the original PRIHATIN programs have ended, there are many active government financing options:
- GGSM2 Government Loan - Up to RM20 million with 80% guarantee
- TEKUN Loan - Microfinancing up to RM100,000
- SME Loan from Banks - Commercial bank financing
- MADANI SME Loan - Latest government financing initiatives
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 Active Government Financing Programs
Our team tracks all current government financing schemes. Get a free assessment of which programs your business qualifies for.