Credit Guarentee Corporation Scheme

Eligibility Criteria & Maximum Loan Limit

  • Malaysian-controlled or Malaysian-owned businesses.
  • Must fall within the definition of SMEs
  • Borrower must have a good credit record
  • Franchise businesses can apply under this scheme
  • Loan of up to RM10 Million

Credit Facilities Covered

  • Term Loan
  • Overdraft
  • Letter of Credit
  • Trust Receipt
  • Export Credit Refinancing (ECR)
  • Bills Purchased
  • Bankers Acceptance
  • Shipping / Performance / Bank Guarantee
  • Hire Purchase
  • Leasing

Features & Benefits

Lending Rate

The annual lending rate is up to 2% above the Base Lending Rate (BLR) of the lending institutions.

* Lending institutions are free to quote the lending rate if the guarantee cover is 50% or less.

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)

Guarantee Fee

  • Unsecured Portion - 2.40% to 4.00% per annum
  • Secured Portion - 2.10% to 3.20% per annum

SME 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.

Refund policy

  • 100% refund of guarantee fees may be accommodated if the notification of cancellation is received from Bank within three (3) months of the anniversary date/ date of Letter of Guarantee (LG).
  • 50% refund of guarantee fees may be accommodated only for superceding, renewal and unmaterialised cases, if the notification of cancelation is received from the Bank between three (3) to six (6) months from anniversary date/ date of Letter of Guarantee (LG).

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