Industrial Property Loan Calculator

Banks commonly finance up to 80-85% of the purchase price or valuation for a completed factory or warehouse, with the final margin set by the credit assessment, the strength of the borrower and the bank's appetite for the asset type. Vacant industrial land is usually financed at a lower margin. SME buyers can sometimes improve their terms through government-linked guarantee schemes, so it is worth asking more than one bank.

Use the effective lending rate quoted by your bank, not the headline base rate. Commercial and industrial loans are priced off the bank's base lending framework plus a spread that reflects the borrower and the property, and they generally price higher than residential mortgages. If you are only exploring, run the calculation at a range of rates to see how sensitive the instalment is.

Industrial property loans typically run up to 25 or 30 years, subject to the age of individual borrowers or, for companies, the bank's view of the business. A shorter tenure raises the monthly instalment but cuts total interest sharply, so compare a few tenures before deciding - the difference over the life of a multi-million ringgit loan is substantial.

Yes. The amortisation arithmetic is the same for land, a factory or a warehouse - enter the price, margin, rate and tenure. Bear in mind that banks usually apply a lower margin of financing to vacant land than to a completed building, and some will only finance land together with a construction facility for the plant you intend to build on it.