Purpose of financing
Financing can be used for:
- Working capital
- Capital expenditures (e.g. purchase of machinery and equipment or renovation cost for owner-occupied business premises)
- Both – Working capital and expansion of productive capacity
Financing cannot be use for:
- Refinancing of existing credit facilities
- Purchase of shares
- Purchase of land / Real Estate investment
- Properties development
- Investment holding company
- Activities where stock in trade is money (including credit, leasing, factoring and insurance businesses)
- Non-economic or non-healthy activities
Applicable to SMEs (other than SMEs in the Primary Agriculture Sector and Micro Enterprises)
- Business enterprise based on the definition of SMEs;
- Registered with the Companies Commission of Malaysia (SSM), authorities/district offices in Sabah and Sarawak or statutory bodies for professional service providers;
- Maximum shareholders' funds not exceeding RM5 Million
- Shareholding by Public Listed Companies and Government Link Companies (if any) in the SMEs should not exceed 20%
- Malaysian residing in Malaysia and owned minimum 51% shareholding incorporated under the Companies Act 1965, the Co-operative Societies Act 1993, the Societies Act 1966
- Companies in all sectors
- Maximum financing amount of up to RM5 Million per customer / SME. This would include financing:
(i) approved under any of BNM’s Funds (exclusive of the Special Relief Facility 2015 and any special assistance established by BNM to assist SMEs that are affected by disaster); and
(ii) to any related companies of the SMEs with common shareholder(s).
- Financing rate of 4% to 8% per annum (subject to the risk profile rating / pricing mechanism set by BNM)
- Maximum tenure of up 5 years from the date of the first drawdown
