- A company registered in Malaysia, is Malaysian-controlled and Malaysian-owned with at least 51% shareholding.
- Meet National SME Development Council’s (NSDC) SME definition (for details, please click here).
- All viable business involved in ‘halal’ activities.
Maximum Financing Limit
Financing of up to RM10.0 million
Financig Facilities Covered
- Term Financing-i
- Cash Line Facility-i
- Letter of Credit-i
- Trust Receipt-i
- Bills Purchased-i
- Bank Guarantee-i
- Export Credit Refinancing-i (ECR-i)
- Accepted Bills-i
- Shipping Guarantee-i
- Hire Purchase-i
- Any other financing facilities determined from time to time by CGC
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
The guarantee coverage ranges between 30% and 90% subject to the following:-
- Unsecured Portion – Up to 80% (a maximum cover of RM3.0 million)
- Secured Portion – Up to 90% (no capping imposed on secured portion)
- Unsecured Portion – 0.75% to 4.00% per annum
- Secured Portion – 0.50% to 3.20% per annum
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 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 (FI) but subject always to full payment of the Guarantee Fee & GST
- Anniversary LG – Payable on or before LG anniversary date, together with the annual Guarantee Fee & GST
ii) Refund of Guarantee Fee
- Refund of guarantee fee and GST will be pro-rated on monthly basis and applicable for LG cancelled 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 cancellation/ approval of amendment by CGC.