6 Steps to Apply for a Business Loan in Malaysia

Kali terakhir diperbaharui October 2, 2023 oleh Shafiq Wahab
6 Steps to Apply for a Business Loan in Malaysia

In addition to applying for business financial assistance from government agencies, you can also make a business loan with the bank to expand your business to a better level. This article will explain in more detail about business loans and the best banks for you to apply for a business loan in Malaysia.

How Can a Business Loan Help Your Business?

As a business owner, there are many things to think about, especially the financial aspects of your business. You need to think about operating costs such as monthly salaries, monthly office rent payments, tax payments, marketing and more. In other words, the company’s business or financial accounts need to be in a strong state in determining the success of your business.

A business loan is a specific financial product for business owners. The loan amount you can borrow depends on the size of your company, annual employee turnover, business classification and bank evaluation criteria. A business loan can be seen as a practical step if your goals are:

  • Develop operations;
  • Improve equipment;
  • Hire more workers.

The loan debt must be repaid to the bank according to the agreed terms and conditions. The loan amount you pay includes once the interest charge from the borrower. Usually, the interest rate charged corresponds to the risk profile of your business. For example, higher business risk will incur higher interest rates.

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How to Apply for a Business Loan?

Applying for a business loan has its own way and it is different from applying for a personal loan, car loan and so on. Usually, the business loan application period takes from a few hours to a few days before it can be approved. Here are the steps you need to take to apply for a business loan:

1. Determine the Amount of Loan Needed

You need to identify your specific purpose of applying for this loan. Maybe you want to add employees, make improvements or something else. You can use an online loan calculator to determine the amount of loan you need.

2. Prepare a Business Plan for the Bank

Entering the details of the business plan in detail in the loan application will help your loan to be approved more easily. This is because the bank can make a better assessment. A good and realistic business plan will increase the chances of your business loan application being approved.

3. Consider the Terms and Conditions

Each bank sets different terms and conditions. Because of this, you need to make sure you really understand this before deciding to choose the best bank. Therefore, you need to know the ability of your business to repay the loan. Lending will determine your monthly payment rate based on various factors such as:

  • Types of loans;
  • Business profits;
  • Type of business;
  • Duration of business operation;
  • Business owner income;
  • Credit history.

4. Choose the Right Type of Business Loan

The next decision you need to make is choosing the right type of loan for your business goals. There are different types of business loans that you can apply for and each loan has its own advantages.

5. Prepare the Necessary Documents

You need to provide comprehensive documentation that contains all your company’s activities and financial situation. This process will help the bank assess whether your business meets the conditions according to the criteria they have set. Each lender will require different documents but usually this is a list of documents that the bank will ask for:

  • Your business details such as business plan, name, address, taxes and so on;
  • Personal and business-related financial statements such as tax returns, bank statements, credit card bills, balance sheets, lease agreements, lists of business assets and other related files;
  • Information about business owners such as personal details for anyone who owns more than 20 to 25 percent of the company.

6. Submit the Application Form

After you finish preparing the form, you can send the application form to the bank. After that, you may have to go through an interview process with the bank because it is part of the process of applying for a business loan. In this interview, the bank will ask all the important things related to your business to help them evaluate your application.

You need to get an explanation from the bank of your choice to get certainty whether this interview will be conducted online or physically. When all the processes are completed, you have to wait for a certain period of time to know whether your application is successful or otherwise.

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List of Best Business Loans for You

You are free to choose any of the best business loans available in Malaysia. Before you choose a business loan from Maybank, BSN, Bank Rakyat and so on, you are advised to study more deeply about the loan you want to take. Also seek advice from a financial advisor to get a professional view. Here are some options you should consider:

Business Loan Types of Products
BSN TemaNiaga
Automation and Digitalisation Facility (ADF)
BSN Micro Pemerkasa
Pemerkasa Belia
Pemerkasa Istimewa
Maybank SME Loan / Micro Financing-i
Maybank SME Digital Financing
Professional Business Loan/Financing-i
Bank Rakyat MUsK Micro-i Financing Scheme
Micro Enterprise Fund (MEF) Financing Scheme
Rural Economic Financing Scheme (SPED)
Micro-i Financing ME2Mara Entrepreneur Guarantee Scheme
Bank Islam iTEKAD Micro Financing Program
BangKIT Micro Assistance from Bank Islam
SME – PENJANA Tourism Financing (PTF)
CIMB SME Working Capital Financing Targeted Relief and Recovery Facility (TRRF) Business Premises Loan Working Capital Guarantee Scheme-i Automation and Digital Guarantee SchemeAgrifood Facility Scheme SME Government Scheme Financing (All Economic Sectors)
Public Bank ABM SME Loan Application / Partner
Bank Muamalat PENJANA Tourism Financing (PTF)
Muamalat BizSTAR-i
Agro Bank Working Capital Financing Facility-i (Tawarruq)
Agro Bakti Financing Program
AgroFood Scheme (PENJANA)
Palm Oil Replantation-i (PALM-i)
Young Agropreneur Financing Scheme (Agro-YES)

As mentioned above, business loans can be a facility for your business to take advantage of. However, if your business is in crisis, a financial loan is not something you should take. You may have difficulty repaying your loan later.

You as a business owner need to be smart in making any decision because every decision taken can have an impact on your business. Taking a business loan can help your business manage company finances, especially cash flow management better.

Also, if you want to get more info related to car insurance, visit the Qoala website for more info. Qoala is a comprehensive insurance comparison platform in Malaysia with the best car insurance coverage offers at affordable prices.

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Personal finance management expert to help you manage your finances better!

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