The role of CGC as the leading credit guarantee provider to the SMEs in the country is to assist small and medium-sized enterprises (SMEs) especially those with inadequate collateral or without collateral or track record to gain access to credit, and to complement the Government’s efforts in promoting and developing business sectors which are key to spurring the economy.
- CGC helps SMEs by providing guarantee coverage for partly secured as well as unsecured credit facilities of up to RM10 million.
- The various CGC guarantee schemes are designed to help SMEs to obtain financing up to the amount required.
- When you apply for a loan or any other credit facility to be covered by CGC, the lending institution does the processing and evaluation and will take you through the necessary steps to obtain the required CGC guaranteed loan or credit facility. There is no need for a separate application.
- The CGC guarantee provides the necessary comfort to the lending institutions, which enables you to obtain financing according to the viability of your business and maximises the value of the collateral offered, if any.
- CGC is always sensitive to business trends and changing conditions in meeting the needs of small and medium-sized Malaysian businesses as and when the need arises.
You qualify if you are a Malaysian citizen or resident-controlled company
- operating a registered or licensed business in Malaysia
- Annual sales turnover or total existing business borrowings meet the requirements of the respective guarantee schemes.
CGC currently offers 12 different guarantee schemes that cater to different customer needs. To determine which ones you qualify for, and meet your needs, please browse the Product & Services menu. From this section, you may select to read more about the scheme of your choice.
- You can approach the nearest CGC branch to submit an application for BizMaju, Bumiputera Entrepreneur Project Fund–i (TPUB-i), Direct Access Guarantee Scheme Start – up (DAGS Start Up) and BizMula-i only.
- For other credit facilities to be covered by CGC, the lending institution does the processing and evaluation and then will take you through the necessary steps to obtain the required CGC guarantee cover. There is no need for a separate application.
- Currently, CGC has 16 branches nationwide. At the same time, CGC is represented by all the commercial banks through their network of more 2,600 branches nationwide. Thus, the helping hand of CGC is always near and readily available.
- CGC does not appoint any 3rd parties / agents to act on its behalf to assist SMEs to obtain financing. Please contact our Client Service Centre at 03-7880 0088 or our branch nearest to you for assistance.
7. Does CGC charge processing fee when I apply for Guarantee, Financing or Government Funded Schemes?
- Processing fee of RM300.00 (excluding GST) is charged for each successful application of the following THREE (3) Guarantee Schemes:
- BizMaju (previously known as Enhancer Excel and Enhancer Direct);
- BizSME; and
- Direct Access Guarantee.
There is also an annual renewal fee of RM150.00 (excluding GST) charged for the above THREE (3) Guarantee Schemes.
- There are no processing and renewal fees charged for our other Guarantee Schemes (other than the above THREE (3) Guarantee Schemes) as well as our Financing and Government Funded Schemes.
CGC’s core business is credit guarantee, which is provided to SMEs with viable business but lack or do not have sufficient collateral and track record to gain access to financing from the financial institutions. FIs, on the other hand, provide loans and other financial services and disburse funds directly to their borrowers.
In line to further avail financing to SMEs, CGC also provides direct financing to certain groups of SMEs which are made available through its 16 branches nationwide.
All registered businesses are eligible to apply for guarantee coverage. However, we appraise the application based on viability of the business.
10. I have been in the business for less than a year. Am I eligible to apply for a business loan under CGC scheme?
Yes. You may submit your application together with the required documents such as proper business plan and realistic cash flow projections acceptable to the FIs and CGC. However, the final decision is subject to meeting FIs’/CGC’s requirements.
11. Can I apply for a loan to purchase a landed property, vehicles or buy over a company (company takeover)?
No. CGC guarantee is solely for the purpose of working capital and asset acquisitions, which includes buying of machinery for business purpose only.
All conventional and Islamic banks as well as development financing institutions participate in our guarantee schemes.
FI has the right to decide whether to entertain or not to entertain your application if they think your business is not viable, insufficient documents or fail to meet their internal requirements.
For application submitted via CGC branches, please refer to the document checklist which is available at all CGC branches and Client Service Centre (CSC). You may also download the checklist from CGC’s website. For application submitted via FI, you may refer to the respective FI for the document checklist.
If the documents are not complete, CGC will not be able to proceed with the processing of your application due to incomplete information. Therefore, CGC will return the application and you may reapply once the documents required are available.
In general, an application is rejected if the borrower fails to meet our internal credit scoring criteria and has adverse track record.
17. If I have an outstanding loan under CGC scheme, am I eligible to apply for another guarantee with a different FI?
- Yes, as long as you meet the eligibility criteria and you have fully utilized the total exposure limit set by CGC.
- Borrower meets the eligibility criteria if the outstanding loans under CGC schemes do not exceed 3 separate outstanding loans from different financial institutions (excluding government-backed schemes).
18. Previously I had a loan under CGC scheme which is fully settled. Am I eligible to apply for another loan and how should I go about it?
- Yes, you may apply for another guarantee facility via the following channels:
For submission of an application via CGC branches you may visit the CGC branch nearest to you or our Client Service Centre at CGC’s head office.
- For submission of an application via FI
You may visit any participating FI branch nearest to you to obtain credit facilities and guarantee coverage under a suitable scheme of CGC.
- For application submitted via CGC branches, please refer to the CGC branch from which you obtained the existing facilities.
- For application submitted via FI, please refer to the FI branch from which you obtained the existing facilities.
Yes, you may submit the request for application submitted via CGC branches and application submitted via FI to CGC branches and Financial Institutions respectively for their further processing.
The repayment calculator will give you an idea of what your monthly payments or payment schedule will be if you are interested in applying for a loan. To use the loan calculator you need the following information:
- Loan Amount:This is the total amount that you are applying. It does not include interest or fees.
- Monthly Interest Rate:This is the current interest rate that the bank has agreed to give you for the duration of the loan.
- Tenure of loan in months:This is the tenure of the loan – from the time the loan was granted till you finish paying it.
- Repayment Schedule:If you wish to receive the full repayment (Amortisation) schedule click on “Yes”. This will give you the monthly payments for the duration of your loan, indicating the principal/interest balances at the end of each month. If you click on “No” you will receive the amount of your monthly payments only. Click on “Calculate” to receive the information you requested.