SME Loan For Young Malaysian Entrepreneur

March 25, 2019

Looking at the current scenario, Small and Medium Enterprises (SMEs) are the backbone of the country’s economic growth in Malaysia. It is one of the industrial sectors found in Malaysia and is now seen as one of the industries that plays an important role in the country’s economic growth. Hence, more facilities are created to assist the industry such as increasing the role of banks in providing easier SME loan, ecosystem financing and more.

sme loan rhb

This article will list some financial aid programs known as SME loan which created by the government that can continuously help SME entrepreneurs grow their businesses as well as to help new people to start their business. The form of financial assistance is also diverse and most of them do not involve guarantors, do not require collateral, can be structured according to project and low risk.

Bumiputera Enterprise Enhancement Programme (BEEP)

The programme was created to develop Bumiputera SME entrepreneurs with potential throughout Malaysia. Through this programme, selected Bumiputera SME entrepreneurs will be provided with a comprehensive package of financial assistance and advisory services.

Criteria to apply:

  • Registered under the Companies Act 1965 / Business Registration 1956
  • Meets the SMI criteria
  • 100% owned by Bumiputera
  • Have a valid business premises license
  • SCORE (minimum 1 star) or MCORE (Min. Level 2)
  • Has been operating for at least 6 months
  • Total funding is 50% of the total project or up to RM500,000
  • Website and telephone number: 603 – 2775 6000

Soft Loan for SMEs (SLSME)

by Malaysian Industrial Development Finance Berhad (MIDF)

The program provides assistance to projects, fixed assets and working capital funding to start-ups and existing companies. In addition, it also helps SMEs operating on unlicensed premises to transfer their operations to legitimate sites or premises.

Criteria to apply:

  • Companies registered under Companies Act 1965, 60% equity by Malaysians, have a legitimate premise. Financing amount:
  • Project: total funding up to RM5 million
  • Fixed assets: total financing of up to RM 5 million
  • Working capital financing: total funding of up to RM 3 million
  • Hardware and software Information technology: financing up to RM 500,000
  • The interest rate is 4.0%
  • Website and telephone number: 603 – 2173 8888

Business Start-Up Fund (BSF)

by Malaysian Technology Development Corporation (MTDC)

The program aims to promote and facilitate the growth of technology entrepreneurs and newly started businesses.

Criteria to apply:

  • Companies registered under the Companies Act 1965
  • A minimum of 70% equity is owned by a Malaysian entrepreneur or a group of entrepreneurs
  • The proposed technology for commercialisation must be from one of the Cluster of Priority Technologies
  • Products must be important in innovation / innovation. Financing amount:
  • Flexible financing through Exchange Notes (CN) and / or a Maximum Preference Share of RM5.0 million or 90% of the projected or lower cost of the project.
  • The CN refund period from the first month of the 4th year on a monthly basis within 5 years.
  • Website and phone number: 603 – 2172 6000

Micro Enterprise Fund (MEF)

by Bank Negara Malaysia (BNM)

This program is created to provide continuous access to financial financing especially for SMEs through local banks such as AgroBank, RHB Bank, and etc.

Criteria to apply:

  • Malaysian
  • Member of Cooperative / Hawkers Association and Hawkers
  • Single owner, partnership, private limited company
  • Aged 18 years and not later than 65 years when the financing period expires
  • Staying in the business operations area
  • Total funding from RM 1,000 to RM 50,000
  • Website and telephone number: / 603 – 2698 8044

In Summary

Many do not know exactly how many programs have been created to help SME entrepreneurs continue to grow their businesses and continue their sustainability in business. Apart from the above schemes, there are other parties that you can apply for such as Amanah Ikhtiar Malaysia (AIM), MyCreative Ventures and others. You can also use personal financing as a capital to grow your business.