Commercial Property & Factory Loan Rates in Malaysia (2026)
Buying a factory, warehouse or commercial property in Malaysia? Business property loans are priced off each bank's reference rate plus a spread agreed case by case. Below are the reference rates the major banks publish today, what banks print for commercial and industrial property, and the margin and tenure limits they state.
Rates checked on 7 October 2026 on each bank's and Bank Negara Malaysia's own pages. These are published reference rates, not loan offers: the rate on your loan depends on your company's financials, the property and the loan size.
Reference rates at major Malaysian banks
| Bank | Base Rate (BR) | BLR / BFR | Source |
|---|---|---|---|
| Maybank | 2.75% | 6.40% | bank page |
| Public Bank | 3.27% | 6.47% | bank page |
| RHB | 3.50% | 6.45% | bank page |
| Alliance | 3.57% | 6.42% | bank page |
| OCBC | 3.58% | 6.51% | bank page |
| AmBank | 3.60% | 6.45% | bank page |
| UOB | 3.61% | 6.57% | bank page |
| Hong Leong | 3.63% | 6.64% | bank page |
| Affin | 3.70% | 6.56% | bank page |
| CIMB | 3.75% | 6.60% | bank page |
All effective 11 to 17 July 2025, after the OPR cut to 2.75%. Islamic BR and BFR are the same figures at these banks. BNM OPR · BNM MHS
Key numbers
- OPR: 2.75%. Bank Negara Malaysia last changed the OPR on 9 July 2025 and held it at its 3 September 2026 meeting. The next meeting is on 5 November 2026; reference rates move with the OPR.
- Base Rate (BR): 2.75% to 3.75% at the ten banks above. BLR / BFR: 6.40% to 6.64%.
- Standardised Base Rate (SBR): 2.75% at every bank, but only for loans to individuals. A loan to a Sdn Bhd or other business is priced off the bank's BR, BLR / BFR or cost of funds, plus or minus a spread.
- What banks print for commercial and industrial property: Hong Leong SMElite term loan at BLR minus 2.20% (4.44% today); OCBC commercial property loan for individuals illustrated at SBR plus 1.50% (4.25%); UOB commercial property loan illustrated at SBR plus 1.61% (4.36%); Public Bank SWIFT Plan for shophouses, warehouses and factories illustrated at 4.30%. These are product disclosure sheet illustrations, not offers.
- Market benchmark: the average lending rate on all outstanding commercial bank loans was 4.55% in July 2026 (BNM Monthly Highlights and Statistics, table 2.1).
- Margin and tenure: published maximums for commercial and industrial property are 85% to 90% of value (some include 5% to 10% for insurance and fees), with tenures of 20 to 35 years, usually ending by the borrower's age 70. Some SME packages lend up to 140% to 150% of the property value when working capital is bundled in (OCBC, CIMB, Hong Leong).
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WhatsApp usWhat affects your commercial loan rate?
- Borrower, a Sdn Bhd is priced off BR, BLR or cost of funds; an individual buyer off SBR. Company financials and existing borrowings matter most.
- Property, type, age, title and location all affect how much a bank will lend and at what spread.
- Loan amount and tenure, larger and longer loans are priced case by case.
- Margin requested, asking for the maximum margin usually means a tighter assessment.
- OPR, every bank's BR and BLR follow the central bank's policy rate.
How commercial property loans differ from housing loans
- Pricing: SBR applies only to individuals; business borrowers are priced off BR, BLR or cost of funds.
- Limits: BNM's 70% loan-to-value cap is for a third housing loan, not commercial property. Commercial margins and tenures are set by each bank.
- Margin: published commercial maximums are 85% to 90% of value; SME packages with working capital can go higher.
- Tenure: 20 to 35 years depending on the bank, usually ending by age 70.
- Legal fees and stamp duty: same scales as any property, on larger amounts; use our legal fees and stamp duty calculator.
Plan your monthly instalment
Use our calculator to estimate the monthly payment based on price, margin and tenure.
FAQ
What is the interest rate for a commercial property or factory loan in Malaysia in 2026?
There is no single rate. Business property loans are priced off the bank's reference rate plus a spread agreed case by case. As at 7 October 2026 the OPR is 2.75%, the Base Rate at major banks runs from 2.75% (Maybank) to 3.75% (CIMB) and BLR from 6.40% to 6.64%. Published product illustrations for commercial and industrial property sit at about 4.25% to 4.44%, and the average lending rate on all commercial bank loans was 4.55% in July 2026. Your own rate depends on your financials, the property and the loan size.
How much can I borrow to buy a factory?
Banks publish maximums of 85% to 90% of the property value for commercial and industrial property, and some figures include 5% to 10% for insurance and fees. SME packages that bundle working capital can lend 140% to 150% of the property value (OCBC, CIMB, Hong Leong). BNM's 70% cap applies to a third housing loan, not to commercial property.
How long can I take a commercial property loan in Malaysia?
Published maximum tenures run from 20 to 35 years depending on the bank and product, usually ending by the time the borrower turns 70.
Does the Standardised Base Rate (SBR) apply to company loans?
No. SBR, now 2.75% at every bank, applies only to loans taken by individuals. Loans to a Sdn Bhd or other business are priced off the bank's Base Rate, BLR or BFR, or cost of funds.
Can you help me find a bank?
Yes. The bankers we work with know industrial property specifically, including which banks are more comfortable with which building types and borrower structures. Tell us your situation and we introduce you, so they assess and quote you directly instead of you approaching banks one by one.
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