Eligibility Criteria
- Sole Prop, Partnership, Limited Liability Partnership, Private Limited Company (Sdn Bhd) that is classified as Small and Medium Enterprises (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 shareholding by Public Listed Companies and Government Linked Companies (if any) in the SME shall not exceed 20%
- Business has been in operation for at least three (3) years.
- 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
Helping viable SMEs in all economy sector to gain access to financing from the Bank by providing guarantee coverage as an alternative collateral solution.
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Financing Limit
Depending on the purpose of financing and the SJPP Guarantee Scheme coverage the limit ranges from RM100,000 up to RM10 Million per SME*
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Financing Rate
Depending on purpose of financing, credit facility type and the SJPP 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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Guarantee Coverage
- The SJPP Guarantee Scheme coverage ranges between 70% to 80% of the financing limit approved by the Bank and to be renewed on annual basis.
- Tenure of guarantee coverage up to the financing tenure or until 2035, whichever is earlier. For annual renewal of SJPP Guarantee, minimum guarantee coverage of twelve (12) months is required.
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Financing Purpose
- Working Capital Financing
- Capital Expenditure Financing
The SJPP Guarantee Schemes does not provide any guarantee coverage for refinancing of existing credit facilities applications
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Guarantee Fee
- Fee for the guarantee coverage provided ranges between 0.5% per annum up to 2.0% per annum, against the guarantee coverage amount and minimum fee of RM 500 may be imposed depending on the SJPP Guarantee Scheme.
- Payment of guarantee fee is payable upfront on annual basis.
- Cancellation fee of up to RM100 may be imposed depending of the SJPP Guarantee Scheme.
*Subject to Bank’s and SJPP credit evaluations of SMEs.
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- SJPP Working Capital Guarantee Scheme 2 (WCGS)
For SMEs that lack collateral and / or require alternative collateral solutions to increase financing access from the Bank. - SJPP Special Schemes for COVID19 under BNM:
i) SJPP Guarantee for Targeted Relief & Recovery Facility (TRRF)
For SMEs that are affected by the reintroduction of COVID-19 containment measures since June 2020. - ii) SJPP Automation and Digitalisation Facility (ADF)
For SMEs to automate processes and digitalise operations to improve productivity and efficiency. - iii) SJPP Agrofood Financing (AF)
For SMEs to increase agrofood production for Malaysia and for exports. - iv) SJPP Penjana Tourism Financing Guarantee Scheme (PTF)
For SMEs in the core tourism and tourism related sectors impacted by the COVID-19 outbreak that are obtaining financing under the PENJANA Tourism Financing Package.
