How much can you borrow to buy a shop lot? (commercial property loan)
One bank's published terms: up to 85% plus 5%, over up to 30 years or to age 70. Worked examples for KL and Selangor shop prices, and what to check first.
Short answer
As one published example, Alliance Bank's commercial property loan, which covers shop lots, lends up to 85% of the price, plus 5% for credit insurance and/or finance entry costs, over up to 30 years or to age 70, whichever comes first (Alliance Bank website, accessed 14 Nov 2026). Each bank sets its own terms, and the amount you actually get depends on the bank's assessment of you and the property. Use our shop lot loan calculator to test the instalment.
This is general information, not financial or tax advice. Confirm current terms with each bank.
What does a published commercial loan offer look like?
| Term | Alliance Bank commercial property loan |
|---|---|
| Eligible property | Shop lots and other commercial property, under construction or completed |
| Margin of finance | Up to 85% |
| Extra financing | Plus 5% for credit insurance (MRTA or MLTA) and/or finance entry cost |
| Tenure | Up to 30 years or to age 70, whichever is earlier |
| Applicants | Malaysian citizens or foreigners aged 21 and above, salaried or self-employed, single or joint |
Source: Alliance Bank, commercial property loan page, accessed 14 Nov 2026. We list one bank because its terms are published and we have checked them. Other banks' figures quoted online could not be verified, so ask each bank directly.
How much cash do I need for a shop lot?
At 85% financing you pay at least 15% yourself, plus stamp duty on the transfer, legal fees and other costs. A few worked examples:
| Purchase price | Loan at 85% | Your 15% |
|---|---|---|
| RM1,380,000 | RM1,173,000 | RM207,000 |
| RM3,000,000 | RM2,550,000 | RM450,000 |
| RM5,000,000 | RM4,250,000 | RM750,000 |
The low and high prices match NAPIC's H1 2026 range for KL double-storey shops in established areas, which transacted at RM1.38m to RM5m. For current asking prices in our hubs, MCE analysis of recent portal adverts, Nov 2026: last 6 months, shop types only, bait and duplicate adverts removed, middle half of asking prices, show for example:
- SS2 Petaling Jaya: RM3.35m to RM11m (89 sale adverts; 81 freehold, 8 leasehold).
- Bandar Puchong Jaya: RM2.35m to RM4.6m (65 sale adverts; 55 freehold, 10 leasehold).
Work out the stamp duty with our stamp duty calculator and the legal costs with the legal fee calculator before you sign.
How does my age affect the loan?
The tenure limit is whichever comes first: 30 years, or the year you turn 70. A 40-year-old can take the full 30 years. A 50-year-old is capped at 20 years. A shorter tenure means a higher monthly instalment on the same loan, so older buyers often need more cash down or a joint applicant.
What decides the final amount?
The headline margin is a ceiling, not a promise. The bank will look at:
- Your income and existing debts. Salaried and self-employed applicants are both accepted, but the bank checks repayment capacity.
- The valuation. The bank values the shop itself, and a valuation below your price can reduce the loan.
- The property. Location, title, tenure and condition. A shop in an established hub is easier to value than one in an untested township.
- The rent. If the shop is tenanted, the rental may support your case. See tenanted or vacant shop lot: which to buy.
Did Budget 2026 or Budget 2027 change shop lot purchases?
Not directly. Budget 2026 raised stamp duty on transfers to foreigners from 4% to 8%, but for residential homes only. Shop lots are not covered (MOF Budget 2026 tax measures). Budget 2027 announced no change to commercial property or RPGT in the main measures, according to PwC (9 Oct 2026).
How do I check whether the numbers work?
- Run the instalment in the shop lot loan calculator.
- Compare it with the expected rent in the rental yield calculator.
- Check whether the rent covers the instalment, quit rent, assessment, insurance and a vacancy buffer.
If the shop only works with every month let at full rent, it is too tight. Our buyer team can share comparable sale and rent data for the hub you are looking at.
Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.
Frequently asked questions
Can we get a loan on a shop?
What is the maximum tenure for a commercial property loan?
Can a foreigner get a loan to buy a shop lot in Malaysia?
How much down payment do I need for a shop lot?
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