Top 5 Business Loans with Low-Interest Rates in Malaysia (2025) – A Detailed Comparison
For startups and SMEs in Malaysia, choosing the right business loan is crucial to ensure smooth financial operations. Here’s a detailed comparison of the top 5 business loans with the lowest interest rates in 2025.
1. Maybank SME Digital Financing
✅ Best for: Small and medium enterprises (SMEs) and startups
📌 Interest Rate: As low as 6.5% p.a.
📌 Loan Amount: RM 20,000 – RM 250,000
📌 Loan Tenure: Up to 5 years
📌 Approval Time: As fast as 24 hours
📌 Collateral Requirement: No collateral required
🔗 Application Website: https://www.maybank2u.com.my
🟢 Pros:
- Fully online application with fast approval
- Suitable for SMEs with minimal paperwork
🔴 Cons:
- Limited loan amount (max RM 250,000)
- Only available for selected industries
2. CIMB SME Business Loan
✅ Best for: Growing SMEs that require flexible financing
📌 Interest Rate: As low as 5.88% p.a.
📌 Loan Amount: RM 50,000 – RM 500,000
📌 Loan Tenure: Up to 7 years
📌 Approval Time: 3-7 working days
📌 Collateral Requirement: Some loans require collateral
🔗 Application Website: https://www.cimb.com.my
🟢 Pros:
- Longer repayment period (up to 7 years)
- Lower interest rates compared to many SME loans
🔴 Cons:
- Requires strong financial records for approval
- Some loans may need collateral
3. Bank Rakyat Biz Financing-i (Islamic Financing)
✅ Best for: Islamic financing and SMEs
📌 Interest Rate: As low as 4.99% p.a. (profit-sharing)
📌 Loan Amount: RM 20,000 – RM 500,000
📌 Loan Tenure: Up to 10 years
📌 Approval Time: 5-10 working days
📌 Collateral Requirement: Some loans may require collateral
🔗 Application Website: https://www.bankrakyat.com.my
🟢 Pros:
- Shariah-compliant financing
- Longer repayment period (up to 10 years)
🔴 Cons:
- Application process can be slow
- Only available for specific types of businesses
4. BSN Micro / SME Loan
✅ Best for: Startups and micro-businesses
📌 Interest Rate: As low as 3.5% p.a.
📌 Loan Amount: RM 5,000 – RM 250,000
📌 Loan Tenure: Up to 7 years
📌 Approval Time: 5-10 working days
📌 Collateral Requirement: No collateral required
🔗 Application Website: https://www.bsn.com.my
🟢 Pros:
- Government-backed loan with low interest rates
- No collateral required, making it accessible to startups
🔴 Cons:
- Loan amount is limited (max RM 250,000)
- Approval process may take longer
5. SME Bank Young Entrepreneur Fund (YEF)
✅ Best for: Young entrepreneurs (aged 18-40)
📌 Interest Rate: As low as 4.0% p.a.
📌 Loan Amount: RM 50,000 – RM 1,000,000
📌 Loan Tenure: Up to 10 years
📌 Approval Time: 7-14 days
📌 Collateral Requirement: Some loans may require collateral
🔗 Application Website: https://www.smebank.com.my
🟢 Pros:
- Government-supported loan for young entrepreneurs
- Large loan amounts (up to RM 1 million)
🔴 Cons:
- Age restriction (18-40 years old only)
- Longer processing time
📊 Loan Comparison Table
| Loan Provider | Interest Rate | Loan Amount | Loan Tenure | Collateral Requirement | Approval Time |
|---|---|---|---|---|---|
| Maybank SME Digital Financing | 6.5% p.a. | RM 20k – RM 250k | Up to 5 years | No collateral | 24 hours |
| CIMB SME Business Loan | 5.88% p.a. | RM 50k – RM 500k | Up to 7 years | May require collateral | 3-7 days |
| Bank Rakyat Biz Financing-i | 4.99% p.a. | RM 20k – RM 500k | Up to 10 years | May require collateral | 5-10 days |
| BSN Micro / SME Loan | 3.5% p.a. | RM 5k – RM 250k | Up to 7 years | No collateral | 5-10 days |
| SME Bank YEF | 4.0% p.a. | RM 50k – RM 1M | Up to 10 years | May require collateral | 7-14 days |
📌 How to Choose the Best Business Loan for You
✅ For fast approval & small funding → Maybank SME Digital Financing (24-hour approval)
✅ For lowest interest rates → BSN Micro / SME Loan (only 3.5% p.a.)
✅ For long-term financing → Bank Rakyat Biz Financing-i (up to 10 years)
✅ For large loan amounts (above RM 500k) → SME Bank YEF
✅ For young entrepreneurs (18-40 years old) → SME Bank YEF
Choosing the right business loan depends on your financing needs, repayment ability, and business growth stage. Always compare the terms before applying.
