TEKUN Loan Malaysia 2026
TEKUN Nasional (Tabung Ekonomi Kumpulan Usaha Niaga) is a Malaysian government agency under the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) that provides microfinancing for small entrepreneurs. Unlike bank loans, TEKUN offers accessible financing with minimal requirements, making it one of the easiest government financing options for Malaysian entrepreneurs.
TEKUN Loan Quick Facts
- Loan Amount:
- RM1,000 to RM100,000
- Interest Rate:
- 4% p.a. (flat rate)
- Tenure:
- 6 months to 5 years
- Collateral:
- Not required
- Guarantor:
- Not required for most schemes
- Approval Time:
- 2 to 4 weeks
- Eligibility:
- Malaysian citizens aged 18-65
- Application:
- Online or at TEKUN branch offices
What is TEKUN Nasional?
TEKUN Nasional was established in 1998 to provide easy access to financing for Malaysian entrepreneurs, particularly those who may not qualify for traditional bank loans. TEKUN operates under the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) and has helped hundreds of thousands of entrepreneurs across Malaysia.
Key characteristics of TEKUN financing:
- No collateral required - Unlike banks, TEKUN does not require property or asset pledges
- Simple application - Minimal paperwork compared to bank loan applications
- Low interest rate - Fixed 4% per annum flat rate across most schemes
- Inclusive eligibility - Open to Bumiputera, Chinese, and Indian entrepreneurs
- Wide coverage - Over 200 branch offices across all Malaysian states
Pro Tip
TEKUN is ideal if you're a new entrepreneur, have been rejected by banks, or need a small loan amount under RM100,000. The application process is significantly simpler than traditional bank loans.
TEKUN Loan Products
TEKUN offers several financing schemes tailored to different entrepreneur profiles:
1. Skim Pembiayaan TEKUN (Main Scheme)
The core financing product for established small businesses.
| Feature | Details |
|---|---|
| Amount | RM10,000 to RM100,000 |
| Interest | 4% p.a. (flat) |
| Tenure | Up to 5 years |
| For | Existing businesses with SSM registration |
2. Skim Pembiayaan Mikro TEKUN (Micro Scheme)
For very small businesses and home-based entrepreneurs.
| Feature | Details |
|---|---|
| Amount | RM1,000 to RM10,000 |
| Interest | 4% p.a. (flat) |
| Tenure | Up to 3 years |
| For | Micro entrepreneurs, home businesses |
3. Skim Pembiayaan Teman TEKUN (Friend Scheme)
Specifically for non-Bumiputera entrepreneurs (Chinese, Indian, and other races).
| Feature | Details |
|---|---|
| Amount | RM5,000 to RM100,000 |
| Interest | 4% p.a. (flat) |
| Tenure | Up to 5 years |
| For | Non-Bumiputera Malaysian entrepreneurs |
4. Skim Pembiayaan Kontrak TEKUN (Contract Scheme)
For entrepreneurs who have secured government or corporate contracts.
| Feature | Details |
|---|---|
| Amount | Up to RM100,000 |
| Interest | 4% p.a. (flat) |
| Tenure | Based on contract period |
| For | Contract-based businesses |
5. TEKUN Youth Entrepreneur Scheme
Targeted at young Malaysian entrepreneurs entering business.
| Feature | Details |
|---|---|
| Amount | RM1,000 to RM50,000 |
| Interest | 4% p.a. (flat) |
| Tenure | Up to 5 years |
| For | Entrepreneurs aged 18-35 |
Not sure which TEKUN scheme suits you? We can help identify the best option.
TEKUN Interest Rate Explained
TEKUN charges a flat rate of 4% per annum on all its financing schemes. Here's what this means in practice:
Example Calculation (RM50,000 loan, 5 years):
| Component | Amount |
|---|---|
| Principal | RM50,000 |
| Total Interest (4% x 5 years) | RM10,000 |
| Total Repayment | RM60,000 |
| Monthly Payment | RM1,000 |
Flat Rate vs Reducing Balance
TEKUN uses a flat rate, meaning interest is calculated on the original loan amount throughout the tenure. The effective interest rate is approximately 7.5-8% when compared to reducing balance (bank standard). Despite this, TEKUN rates are still competitive for microfinancing.
Who Can Apply for TEKUN?
TEKUN Eligibility Requirements
- Malaysian citizen (applicable for Bumiputera and non-Bumiputera under respective schemes)
- Aged between 18 and 65 years old
- Business registered with SSM or local authority
- Business must be in operation (or have a viable business plan for startups)
- Not a bankrupt or undergoing legal proceedings
- No outstanding TEKUN loan in default
- Annual business revenue below RM300,000 (for most schemes)
- Not a civil servant (unless retired or taking unpaid leave)
Business Sectors Eligible for TEKUN
TEKUN covers a wide range of business sectors:
- Food & Beverage - Restaurants, catering, food production, food trucks
- Retail & Trade - Shops, online sellers, wholesale, market vendors
- Services - Tailoring, beauty salons, repair services, cleaning
- Agriculture - Small-scale farming, livestock, fisheries
- Manufacturing - Cottage industries, craft production
- Technology - IT services, digital businesses (newer focus area)
- Construction - Small contractors with government/corporate contracts
Required Documents
Documents for TEKUN Application
- Copy of MyKad (IC) - front and back
- SSM registration certificate (Form A, B, D, or company profile)
- Business license from local authority (if applicable)
- 2 passport-size photos
- Business profile or simple business plan
- 3 months bank statements (personal or business account)
- Proof of business premises (rental agreement or utility bill)
- Latest income tax return (if available)
- Contract document (for Kontrak scheme applicants)
Pro Tip
TEKUN's document requirements are much simpler than bank loans. You do not need audited financial statements, which makes it accessible for micro and informal businesses.
How to Apply for TEKUN Loan
Step 1: Check Eligibility
Determine which TEKUN scheme fits your profile. Bumiputera entrepreneurs can apply for the main scheme, while non-Bumiputera apply under Skim Teman TEKUN.
Step 2: Prepare Documents
Gather all required documents listed above. Ensure your SSM registration is current and your business license is valid.
Step 3: Submit Application
Option A: Online Application Visit the TEKUN Nasional official website and submit your application through the e-TEKUN portal. You will need to:
- Create an account
- Fill in the online application form
- Upload supporting documents
- Submit for processing
Option B: Branch Application Visit your nearest TEKUN branch office with all required documents. Branch officers can assist you with the application.
Step 4: Verification & Assessment
TEKUN officers will:
- Verify your submitted documents
- Conduct a site visit to your business premises
- Assess your business viability
- Check for any outstanding TEKUN loans
Step 5: Approval & Disbursement
- Approval typically takes 2 to 4 weeks after complete submission
- Upon approval, you'll sign the financing agreement
- Funds are disbursed directly to your bank account
- First repayment starts 2 months after disbursement
Repayment Discipline
TEKUN tracks repayment records carefully. Defaulting on a TEKUN loan will prevent you from accessing future TEKUN financing and may affect your CCRIS credit record. Always ensure timely repayments.
TEKUN vs Bank Loans
| Feature | TEKUN | Bank SME Loan |
|---|---|---|
| Loan Amount | Up to RM100,000 | RM50,000 - RM10 million |
| Interest Rate | 4% flat (7.5% effective) | 4% - 8% reducing balance |
| Collateral | Not required | Often required above RM500k |
| Min. Business Age | Can be new | Usually 2+ years |
| Approval Time | 2-4 weeks | 3-6 weeks |
| Documents Required | Minimal | Extensive |
| Credit Check | Basic | Comprehensive (CTOS/CCRIS) |
| Best For | Micro/small businesses | Established SMEs |
TEKUN Repayment Options
TEKUN offers flexible repayment methods:
How to Repay TEKUN Loan
- Direct debit from bank account (recommended)
- Online banking transfer to TEKUN account
- Payment at TEKUN branch offices
- Payment at post offices nationwide
- JomPAY online payment system
Tips for TEKUN Loan Approval
Increase Your TEKUN Approval Chances
- Ensure your business is actively operating with visible business activities
- Have clean financial records (no bounced cheques or loan defaults)
- Prepare a clear business plan showing how the funds will be used
- Keep your SSM registration and business licenses up to date
- If previously rejected, wait at least 6 months before reapplying
- Attend any TEKUN-organized entrepreneur development programs
- Show proof of existing sales or customer base
- Be present and cooperative during the site verification visit
TEKUN Branch Network
TEKUN Nasional has branch offices in every Malaysian state:
- Peninsular Malaysia - All 11 states plus Federal Territories (KL, Putrajaya, Labuan)
- Sabah - Main office in Kota Kinabalu with district branches
- Sarawak - Main office in Kuching with district branches
You can find your nearest TEKUN branch by visiting the official TEKUN Nasional website or calling their hotline.
Frequently Asked Questions
Frequently Asked Questions
Need More Than RM100,000?
If your business needs exceed TEKUN's RM100,000 limit, consider these alternatives:
- GGSM2 Government Loan - Up to RM20 million with government guarantee
- Bank SME Loans - Up to RM10 million from commercial banks
- Working Capital Financing - Short-term operational funding
You can also combine TEKUN financing with other sources - there's no restriction on having both a TEKUN loan and a bank loan simultaneously, as long as you can service both.
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.
Get Help With Your TEKUN Application
Not sure if TEKUN is right for you? Our team can assess your profile and suggest the best financing option - whether it's TEKUN, bank loans, or government schemes. Free consultation.