Eligibility Criteria

• • A business registered in Malaysia, is Malaysian-controlled and Malaysian-owned with at least 51% shareholding.
  • Meets the SME Corporation Malaysia’s definition of an MSME (for details, please click here).

• Business must be registered with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) or authorities / district offices in Sabah and Sarawak or statutory bodies for professional service providers.
• Must be a Shariah Compliant business activity throughout the guarantee tenure.

Maximum Financing Limit

• Financing of up to RM5.0 million

Maximum Financing Tenure

• Tenure of up to FIFTEEN (15) years

Type of Financing Facilities

• Term Financing-i
• Cash Line Facility-i
• Letter of Credit-i or Trust Receipt-i
• Bills Purchased-i
• Bank Guarantee-i
• Export Credit Refinancing-i (ECR-i)
• Accepted Bills-i
• Shipping Guarantee-i
• Hire Purchase-i
• Leasing-i
• Invoice Financing-i
• Any other financing facilities determined from time to time by CGC.

Purpose of Financing

• Working capital; and/or
• Asset Acquisition; and/or
• Financing operations cost; and/or
• Renovation cost (reimbursement basis); and/or
• Refinancing

Profit Rate

• The annual profit rate is up to 2% above the Base Financing Rate (BFR) of the Financial Institutions.

*Financial Institutions are free to quote the profit rate if the guarantee cover is 50% or less.

Participating Financial Institutions

• Participating Development Financial Institutions (DFIs) and Islamic Banks

Guarantee Cover

• CGC guarantee cover ranges between 30% and 80%, or up to RM5 million, whichever is lower.

Guarantee Fee

• Unsecured Portion – 0.75% to 4.00% per annum
• Secured Portion – 0.50% to 3.20% per annum

MSMEs with higher risk profiles will be charged higher guarantee fees, whereas MSMEs with lower risk profiles will be charged lower guarantee fees. The range observed is to match the customer’s credibility in terms of risk rating with the pricing of the guarantee.

i.  Payment of Guarantee Fee

• New Letter of Guarantee (LG) – Payable upon request for LG by Financial Institution but subject always to full payment of the Guarantee Fee.
• Anniversary LG – Payable on or before LG anniversary date, together with the annual Guarantee Fee

ii.  Refund of Guarantee Fee

• Refund of Guarantee Fee will be pro-rated on monthly basis and applicable for LG terminated or amended by CGC based on the unutilised period of the LG.
• The utilised period is calculated from the month of LG / Anniversary LG until the month of receipt of termination / approval of amendment by CGC.