Eligibility Criteria
- Sole Prop, Partnership, Limited Liability Partnership, Private Limited Company (Sdn Bhd) that is classified as SME*
- Malaysian owned companies i.e. with at least 51% shareholding / ownership by Malaysian that is residing in Malaysia and is registered with either:
i) Companies Commission of Malaysia either under the Registrar of Business Act (1956) or Companies Registration Act 1965 and / or the Companies Registration Act 2016 or Limited Liability Partnership Act 2012; or
ii) Respective authorities or district offices in Sabah and Sarawak; or
iii) Respective statutory bodies for professional services providers - Business has been in operation for at least three (3) years.
- Key person must at least be 21 years old at point of application and does not exceed 65 years old upon settlement of financing that is guaranteed under CGC.
- Business with good credit tracker record / history
* Meets the SME definition as issued by SME Corporation Malaysia that is endorsed by the National Entrepreneur and SME Development Council (NSDC). It however excludes entities that are public-listed on the main board and subsidiaries of publicly-listed companies on the main board, Multinational Corporations (MNCs), Government-Linked Companies (GLCs), Syarikat Menteri Kewangan Diperbadankan (MKDs) and state-owned enterprises. For more details on SME definition, please visit www.smecorp.gov.my
Objective
CGC guarantee provides an alternative collateral solution for SMEs that lacks in collateral or unable to provide any collateral, which enables businesses to obtain financing according to the viability of the SME business.
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Financing Limit
Depending on the purpose of financing and the CGC Guarantee Scheme coverage the limit ranges from RM100,000 up to RM10 Million per SME*
*The financing limit offered is subject to CGC internal limit capping.
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Financing Rate
Depending on purpose of financing, credit facility type and the CGC Guarantee Scheme coverage percentage (%) the financing rate is up to 2.0% per annum above the Bank’s Base Lending Rate (BLR)**
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Financing Purpose
- Working Capital Financing
- Capital Expenditure Financing
The CGC Guarantee Schemes does not provide any guarantee coverage for refinancing of existing credit facilities applications
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Guarantee Fee
- Fee ranges between 2.1% up to 5.0% per annum against the guarantee coverage amount depending on the CGC Guarantee Scheme, secured and unsecured portion of the financing and business risk profile.
- SMEs with higher risk profiles will be charged higher guarantee fees, whereas SMEs with lower risk profiles will be charged lower guarantee fees. The range observed is to match borrower’s credibility in terms of risk rating with the pricing of the guarantee.
- Payment of guarantee fee is payable upfront prior to disbursement of financing for the 1st year and for subsequent years, payable on annual basis until end of financing / guarantee tenure.
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Guarantee Coverage
The CGC guarantee coverage ranges from between 30% to 90% subject to the following:
- Unsecured Portion - Up to 80% (a maximum cover of RM3 Million)
- Secured Portion - Up to 90% (no capping imposed on secured portion)
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- CGC BizJamin Scheme (previously known as Credit Enhancer Scheme)
For SMEs that lacks collateral and / or require alternative collateral solutions to increase financing access from the Bank. - CGC BizJamin SRF (only applicable for financing under the BNM Special Relief Facility) – Status: Fully Utilized
A guarantee scheme to alleviate short-term cash flow problems faced by SMEs affected by the COVID-19 outbreak - CGC Flexi Guarantee Scheme
Provides guarantees for financing granted under the BNM's Fund for SMEs- All Economic Sectors facility.
