Low Interest Rate for Business Loan in Malaysia 2023
Generally, the average interest rates for small business loans are lower than for other types of loans. However, if you’re looking to take out a business loan and want to know what your potential monthly payments may be, here’s a chart with all the info you’ll need. Business loan interest rates have risen due to the increasing prime rate. They are likely to get lower again in 2023. Read on to know more about the interest rate for business loan in Malaysia.
What is a Business Loan?
A business loan is a niche financial product, tailored for business owners. It’s different from standard personal loans and you can’t apply for one the same way.
When starting a business, there are many expenses. To start, you need capital to fund the inception of your business, as well as other expenses such as operational costs, suppliers and more. A few business owners may have stable financial backgrounds which allow them to receive funds from investors or use their own assets. A loan is not at the forefront of their mind at this point.
As your company grows, it may require more money to meet increased demands and pay for wages. This can negatively affect the company in terms of future profits. If you need more working capital, you should consider applying for a loan to finance your finances. This will help keep your business profitable for the future.
Read also: Type of Business Loan in Malaysia
What is Interest Rate?
The business loan Malaysia interest rate is how much the borrower has to pay to the lender each year. This allows the borrower to take out an agreed amount of money from that loan, usually in a one-year term.
Essentially, you borrow some money from a bank or other lending institution at an agreed upon interest rate. In other words, the amount you borrow is an advance payment and will be paid back with interest by a future date.
How Interest Rate is Calculated?
There are many different factors that influence a lender’s interest rate to a borrower. This article will list the most important ones and help you understand what questions your bank might ask you when applying for a loan.
- Age
- Job
- Gender
- Background
- Income
- Employment
- Credit & payment history
- Relationship with the lender
- Individual negotiation skills
- Others
How to calculate interest rate for business loan in Malaysia? The higher the risk you have with defaulting on your loan, the higher the interest rate will be. This is because any factors that could negatively affect your ability to repay the loan will be taken into account when calculating interest rates.
List of Banks that Provide Business Loan with Interest Rate
1. RHB SME Online Financing
Tenure: Up to 7 years
Interest rates: from 8.45% p.a.
Interest Type: Variable interest rate
2. Alliance Bank Digital SME Loan
Tenure: Up to 5 years
Interest rates: from 5.9% p.a.
Interest Type: Flat interest rate
3. HSBC Working Capital Term Loan for SME
Tenure: Up to 5 years
Interest rates: from 9.89% p.a.
Interest Type: Variable interest rate
4. Bank Rakyat Skim Pembiayaan Mikro-i MEF
Tenure: Up to 5 years
Interest rates: from 8.25% p.a.
Interest Type: Flat profit rate
5. Maybank SME Clean Loan
Tenure: Up to 5 years
Interest rates: from 4.50% p.a.
6. AFFINBANK Unsecured Business Islamic Financing
Tenure: Up to 7 years
Interest rates: from 5.14% p.a.
7. UOB BizMoney
Tenure: Up to 5 years
Interest rates: from 5.00% p.a
Interest Type: Flat interest rate
8. SME Bank Small Business Financing
Tenure: Up to 7 years
Interest rates: from 8.00% p.a
Interest Type: Flat profit rate
9. MIDF Soft Loan Scheme for Small & Medium Enterprises
Tenure: Up to 7 years
Interest rates: from 4.00% p.a
Interest Type: Flat interest rate
10. IVC Business Loan
Tenure: Up to 5 years
Interest rates: from 18.00% p.a
Interest Type: Flat interest rate
Take Business Loan from Pinjaman Compare Instead
Pinjaman Compare, which offers the lowest interest rates for business loan in Malaysia, starting from 0.88% to 8%. By applying with Pinjaman Compare, we will advise and submit your loan application to more than 10 licensed banks or loan providers so that you may choose among them after the application status is updated.
PinjamanCompare provides the insight of how banks & licensed money lenders work, and are charging the right rate and getting you the fairest terms & conditions over your application. For your information, most of the licensed loan companies that we will submit your application to only use 24 hours to approve your loan.
Most of the people looking for the low interest business loan Malaysia, SME loan, housing loan, hire purchase loan and others.
Steps to Apply:
Step 1: Prepare document (Credit Report, Bank Statements, Tax Returns, Income Statement, Balance Sheet, Budget and Future Cash Flow Projections).
Step 2: Fill up the application form.
Step 3: Tell us how much is your loan amount.
Step 4: Estimate date of the funding needed.
Step 5: Wait for our call!
Read also: How to Apply Loan for Business in Malaysia
References
Best business loans (2022) RinggitPlus. Retrieved at: https://ringgitplus.com/en/business-loan/