| Objective |
To promote growth of small and medium-sized Bumiputera enterprise in all economic sectors
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| Eligibility |
| Bumiputera entrepreneurs who fulfill the following criteria: |
- Business enterprises based on the definition of SMEs
- Maximum shareholders’ funds not exceeding RM2.0 million
- Shareholding by Public Listed Companies and Government Link Companies (if any) should not exceed 20%
- Wholly-owned Bumiputra institutions residing in Malaysia incorporated under the Companies Act 1965, the Co-operative Societies Act 1993, the Societies Act 1966 or Bumiputra citizens residing in Malaysia and registered with the Companies Commission of Malaysia or any other authoritative body
- Not more than 7 years in operation . Discretion is given to FIs to consider SMEs with more than 7 years in operation provided average net profit is marginal over the last 3 years ( i.e. less than 5% net profit margin)
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Purpose |
For working capital and/or expansion of production capacity |
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Ineligibility |
- Refinancing of existing credit facilities; and
- Purchase of shares
- Purchase of land/ real estate investment
- Properties development
- Investment holding company
- Activities where stock in trade is money ( including credit, leasing, factoring and insurance businesses) and;
- Non-economic or non-healthy activities
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| Type of facility |
| All type of facilities |
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| Tenure |
| 5 years from the date of first drawdown from BNM |
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| Amount of Financing |
| No minimum size. Maximum size is RM5.0 million.
Total financing include financing approved:
- Under any Bank Negara Special Funds ( including scheme which was managed by CGC)
- To any other related companies (including the scheme managed by CGC ) that have similar shareholders
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| Withdrawal of approval |
- The first drawdown of the financing (either partially or wholly) from BNM to the customer must be implemented within 6 months from the date of confirmation approval by BNM. The FIs must withdraw the financing approval for any non-compliance with any provisions of the guideline
- BNM reserves the right to terminate when full drawdown is not made after 12 months of the approval date or any new extension deadline for disbursement is rejected by BNM or non-compliance with any provisions of the guideline.
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| Lending rate |
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As prescribed by Bank Negara. Current BNM funding rate is 1.5% p.a
Lending rate varies at 4.0%, 4.5%, 5.0%. 5.5% and 6.0% p.a. depending on customer’s risk
Pricing mechanism based on the risk profile of the SME are as follows:
- Number of years business is in operation; and
- Collateral value of the loan where guarantee cover provided by CGC is to be taken at face value or for other collateral, at 70% of market value; and
- No collateral value is to be given for lien over Fixed Deposit
Price Category:
Rating
(Column A)
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Margin above BNM Funding Cost (1.5% per annum)
(Column B)
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Maximum Interest Rate Charged to SME Under NEF 2
(Column C) |
1
(Lowest Risk)
|
2.5
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4.0 |
2
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3.0
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4.5 |
3
|
3.5
|
5.0 |
4
|
4.0
|
5.5 |
5
(Highest Risk) |
4.5 |
6.0 |
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