Planning to buy a factory, warehouse, or industrial property in Malaysia? Use our free factory loan calculator to estimate your monthly repayment, total interest, and upfront costs — including stamp duty and legal fees — before you commit.
Loan Details
Your Repayment
Upfront & Legal Costs (Estimate)
How Factory Loans Work in Malaysia
Factory and industrial property loans work differently from residential home loans. Banks treat commercial and industrial assets as higher-risk, so financing terms are more conservative — a lower margin of finance, a shorter tenure, and often a slightly higher interest rate.
How Much Can You Borrow?
- Margin of finance: 70–85% of the property value (residential loans allow up to 90%).
- Down payment: 15–30% of the price, required upfront.
- Loan amount = property price × margin of finance.
Factory Loan Interest Rates
Industrial and factory loans are usually priced against the Base Lending Rate (BLR). Effective rates typically range from 4.5% to 6.5% p.a., depending on the bank, the loan tenure, and your business’s financial profile. SMEs with strong cash flow and collateral generally qualify for better rates.
Loan Tenure
Industrial property loans are usually capped at 25 years, compared with up to 35 years for residential loans — so factory buyers repay over a shorter period.
Stamp Duty & Legal Fees (One-Time Costs)
- Stamp duty (MOT): progressive 1% → 2% → 3% → 4%.
- Loan agreement stamp duty: 0.5% of the loan amount.
- SPA legal fees: 1.25% on the first RM500,000 (SRO 2023 scale).
Browse Factories & Industrial Land in Johor
Factories for sale in Johor — a full range of detached, semi-detached, and link factories across Johor Bahru, Kulai, and Iskandar Puteri.
Industrial land for sale in Johor — from half-acre plots to large multi-acre industrial land for your next factory.
Frequently Asked Questions
What interest rate can I get for a factory loan in Malaysia?
Factory and industrial loan rates are typically BLR-linked, with effective rates around 4.5% to 6.5% p.a. Your actual rate depends on the bank, the loan tenure, and your business’s financials. Compare offers from a few banks before committing.
How much down payment do I need for a factory?
Most banks require a 15% to 30% down payment for industrial property, since the margin of finance is usually 70% to 85%. The exact amount depends on the property type, location, and your credit profile.
What is the maximum loan tenure for industrial property?
Industrial and factory loans are normally capped at 25 years, compared with 35 years for residential property.
Can foreigners get a factory loan in Malaysia?
Yes, but the terms differ. Foreign buyers typically need a higher down payment and must meet conditions set by the bank and local authorities. Check with your bank directly for the current requirements.