Business Financing‑i

BizPower-i SME Property Financing provides financing to corporations that wish to acquire assets but defer the payment for the asset over a specific period. Depending on the customer's funding requirements, the financing can be offered based on the concepts of :

The eligibility criteria for obtaining financing are as follows:

Profile of Applicant, Shareholders and Directors

• A business that has been operating for at least 3 years
• The shareholders, directors and the applicant must enjoy good market and credit reputation
• They must be free from any legal proceedings
• Profits recorded in at least one of the last 3 years
• Good management expertise

Payment Capability

• Applicant's business must be viable and be able to generate adequate cash flow to meet its existing and future obligations
• Applicant must have sound financial record as well as good payment record

Capital Commitment

• Shareholders must demonstrate an acceptable level of financial commitment to the business
• At least 50% of the business is owned by the management team

Provision of Collateral

• Where appropriate, collateral is to be provided to demonstrate the commitment on the part of the applicant

• Application Form

• Refinancing of existing credit facilities
• 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)
• Non-economic or non-healthy activities

• Commodity Murabahah Term Financing-i (CMTF-i)
• Commodity Murabahah Overdraft-i (CMOD-i)
• Letter of Credit-i (LC-i)
• Trust Receipt-i (TR-i)
• Accepted Bills–i (AB-i)

• For working capital and/or expansion in productive capacity

• 4.0% - 6.0% p.a.

• Minimum : RM50,000
• Maximum : RM5.0 million

• Up to 5 years

Terms and Conditions Apply

An enterprise is considered an SME in each of their respective sector based on either the Annual Sales Turnover or Number of Full-Time Employees

a) Based on Annual Sales Turnover

b) Based on Number of Full Time Employees

• Refinancing of existing credit facilities
• 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)
• Non-economic or non-healthy activities

• Commodity Murabahah Term Financing-i (CMTF-i)
• Commodity Murabahah Overdraft-i (CMOD-i)
• Letter of Credit-i (LC-i)
• Trust Receipt–i (TR-i)
• Accepted Bills–i (AB-i)

• For working capital and/or expansion in productive capacity

• 4.0% - 6.0% p.a.

• Up to RM5.0 Million

• Up to 5 years

Terms and Conditions Apply

An enterprise is considered an SME in each of their respective sector based on either the Annual Sales Turnover or Number of Full-Time Employees

a) Based on Annual Sales Turnover

b) Based on Number of Full Time Employees

• Ijarah Term Financing-i Product Disclosure Sheet
• Commodity Murabahah Term Financing-i Product Disclosure Sheet

Based on the concept of Tawarruq – purchase of an asset and subsequent sale of the same asset to a third party to raise funds.

Commodity Murabahah Revolving Credit-i is sale of certain specified commodities, through an exchange, on a cost plus profit basis. In this application, CMRC-i refers to provision of fund by RHBIB to Customer for a certain period of time supported by commodity trades as the underlying transaction.

RHBIB will initiate the commodity trading with Broker A for the purchase of a specified commodity. RHBIB will then sell the commodity to the customer at cost + profit. Subsequently, customer will sell the commodity to Broker B for the same amount transacted under the initial Purchase transaction. At the end of the transaction Customer will have the finance amount available for his use in the form of Revolving Credit-i.

• Murabahah Revolving Credit Facility-i Product Disclosure Sheet
• Commodity Murabahah Revolving Credit-i Product Disclosure Sheet

• Overdraft-i Product Disclosure Sheet

• Industrial Hire Purchase-i Product Disclosure Sheet

Provides guarantee for financings granted under Fund for Small and Medium Industries 2 (FSMI2) and New Entrepreneur Fund 2 (NEF2)

Eligibility

• Per eligibility criteria under FSMI2, NEF2

Ineligibility

• Refinancing of existing credit facilities
• 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)
• Non-economic or non-healthy activities

Purpose

• Working capital
• Expansion of productive capacity; or both

Profit Rate

• 4.0% - 6.0% p.a.

Financing Amount

• FSMI2 : Up to RM5 million (min: RM50,000)
• NEF2 : Up to RM5 million

Financing Tenure

• Up to 5 years

Guarantee Cover

• From 30% - 80%

Guarantee Fee
Based on risk profiling of SMEs:

• Unsecured portion : 0.80% to 2.15% p.a.
• Secured portion : 0.5% to 1.85% p.a.

Terms and Conditions apply

Assisting Bumiputera SMEs with viable business but lack of collateral to obtain the required financing

Eligibility

• Must be a company registered in Malaysia and is a Malaysian-controlled or Malaysian-owned businesses (with at least 51% shareholding owned by Bumiputera)
• Company must be classified as SME as per *Bank Negara Malaysia (BNM)'s definition
• Legitimate business entity of either Sdn Bhd, Partnership or Sole Proprietorship

Type of Facility

• Term Financing
• Overdraft
• Trade Line
• Hire Purchase
• Leasing

Purpose

• Working Capital, and/or‏
• Asset Acquisition

Profit Rate

• Varies depending on the guarantee cover provided by CGC

Financing Amount

• Minimum : RM50,000
• Maximum : RM10 million

Guarantee Cover

• Unsecured portion : up to 90% (max RM3 million)
• Secured portion : up to 90%

Guarantee Fee
Based on risk profiling of SMEs:

• Unsecured portion : 0.75% to 4.0%
• Secured portion : 0.50% to 3.20%

Terms and Conditions apply
*Definition of SME by Bank Negara Malaysia (BNM) as below

Under the new definition, all SMEs must be entities registered with SSM or other equivalent bodies. It however, excludes:

• Entities that are public-listed on the main board; and
• Subsidiaries of:
  • Publicly-listed companies on the main board;
  • Multinational corporations (MNCs);
  • Government-linked companies (GLCs);
  • Syarikat Menteri Kewangan Diperbadankan (MKDs); and
  • State-owned enterprises

To promote growth of small and medium-sized Bumiputera enterprise in primary agriculture sectors

Eligibility
SMEs who fulfill the following criteria:

• SMEs in the primary agriculture sector registered with the Companies Commission of Malaysia (SSM) or authorities/district offices in Sabah and Sarawak
• Maximum shareholders’ funds not exceeding RM5 million
• Malaysian residing and owned minimum 51% shareholding in the SMEs
• Business activities must be within Malaysia

Ineligibility

• Refinancing of existing credit facilities
• Purchase of shares
• Purchase of land/real estate investment
• Properties development
• Investment by investment holding company
• Activities where the stock in trade is money (including credit, leasing, factoring and insurance businesses)
• Non-economic or non-healthy activities
• Non-Shariah compliant business activities (applicable for Islamic financing)
• Ancillary labour cost (i.e. other wages)

Type of Facility

• All facilities

Purpose

• Working capital and/ or
• Capital expenditures (e.g. purchase of machinery and equipment or renovation cost for owner-occupied business premises) and/or
• Development of agricultural projects.

  A.	The land cost may be included in the computation of project cost provided that: The amount does not exceeded 30% of the total project cost The land will only be used for primary food production activities
  B.	Agricultural projects financed must be: Viable projects involving primary food production, integrated agriculture and processing/distribution of food (end-to-end) Domestic oriented, where at least half of the total production is sold in the domestic market

Profit Rate

• 3.75% p.a.

Tenure

• 8 years from the date of first drawdown from BNM

Amount of Financing

• Maximum size is RM5 million per SME
• Total financing include financing approved:

  1.	Under any of Bank Negara Malaysia’s fund (exclusive of the Special Relief Facility 2015 and any special assistance established by BNM to assist SMEs that are affected by disaster)
  2.	To any other related companies (including the scheme managed by CGC) that have similar shareholders

Assisting viable small businesses facing financial difficulties and/or constrained by existing non-performing financings (NPLs) by facilitating rescheduling or restructuring of financing facilities

Eligibility

• Business enterprises based on the definition of Bank Negara Malaysia’s definition of SMEs
• Malaysian owned (at least 51%) companies and institutions registered under the Companies Act 1965, Registration of Business Act 1956, Societies Act 1966 or the Cooperative Societies Act 1993
• All viable SMEs with non-performing financings
• All viable SMEs facing financial difficulties with financing from multi Financial Institutions (FIs)
• The financing granted for business-related purposes only (share financing and financing for personal consumption are not eligible)
• Borrower must have on-going business
• SMEs from all economic sectors are eligible

Features

• All rescheduled or restructured NPL can be reclassified as performing upon approval by the participating financial institutions and accepted by the applicants
• New financing under SDRS; where new financing is deemed justified it shall be granted under existing SME financing schemes established by Bank Negara Malaysia

Terms and Conditions apply

Under the new definition, all SMEs must be entities registered with SSM or other equivalent bodies. It however, excludes:

• Entities that are public-listed on the main board; and
• Subsidiaries of:
  • Publicly-listed companies on the main board;
  • Multinational corporations (MNCs);
  • Government-linked companies (GLCs);
  • Syarikat Menteri Kewangan Diperbadankan (MKDs); and
  • State-owned enterprises

To assist SME companies in all sectors to gain access to financing from participating Financial Institutions (FIs)

Scheme Limit
RM17.5 billion (on revolving basis until expiry of the Scheme)

Eligibility
Open to SME companies from all sectors with at least 51% shares held and controlled by Malaysian citizens and registered with the following:

• Companies Commission of Malaysia either under the Register of Business Act (1956) or Companies Registration Act 1965 and/or the Companies Registration Act 2016 or Limited Liability Partnership Act 2012 (private limited, sole proprietorship and partnership)
• Respective authorities or district offices in Sabah and Sarawak; or
• Respective statutory bodies for professional services providers

(reference to the guidelines for the definition of SMEs issued by SME Corp Malaysia and certified by the National SME Development Council)

Purpose of Financing
The facility is to be used for working capital as well as for capital expense (CAPEX). The facility cannot be used to refinance existing facility granted by the same or other participating FIs

The participating FIs and/or SJPP will be responsible for determining the genuineness of the borrower / customer based on their respective credit evaluation procedures

Guarantee Coverage
70% guarantee to the financing obtained from the participating FIs (including principal and interest / profit) by the Government of Malaysia

Guarantee Fee
1% per annum payable upfront
(minimum fee of RM1,000 and renewal of guarantee coverage for a minimum period of 12 months)

Financing Limit

• Minimum : RM100,000
• Maximum : RM10 million

Tenure of Financing
Up to 17 years or until 31 December 2035, whichever is earlier

Interest / Profit Rate
Determined by participating FIs

Type of Facility
Term Loan/ Term Financing, Overdraft/ Cashline-i, Trade Facility and Commercial Card

Participating FIs
Open to all Commercial Banks, Islamic Banks and Development Financial Institutions under the purview of Bank Negara Malaysia

Source of Funds
From the participating FIs

Availability / Application Period
Opened from 1 January 2016 or upon full utilisation of the scheme limit of up to Ringgit Malaysia Seventeen Billion and Five Hundred Million (RM17.5 billion) only or upon expiry of the guarantee tenure on 31 December 2035 whichever is earlier

To assist Bumiputera SME companies in all sectors to gain access to financing from participating Financial Institutions (FIs) with lower cost of financing and improving high performance Bumiputera SME companies

Scheme Limit
RM1 billion

Eligibility
Open to Bumiputera SME companies from all sectors with at least 51% shares held and controlled by Malaysian citizens and registered with the following:

• Companies Commission of Malaysia either under the Register of Business Act (1956) or Companies Registration Act 1965 and/or the Companies Registration Act 2016 or Limited Liability Partnership Act 2012 (private limited, sole proprietorship and partnership)
• Respective authorities or district offices in Sabah and Sarawak; or
• Respective statutory bodies for professional services providers

(reference to the guidelines for the definition of SMEs issued by SME Corp Malaysia and certified by the National SME Development Council)

Purpose of Financing
The facility is to be used for working capital as well as for capital expense (CAPEX). The facility cannot be used to refinance existing facility granted by the same or other participating FIs

The participating FIs and/or SJPP will be responsible for determining the genuineness of the borrower / customer based on their respective credit evaluation procedures

Guarantee Coverage
70% guarantee to the financing obtained from the participating FIs (including principal and interest / profit) by the Government of Malaysia

Guarantee Fee
0.75% per annum payable upfront
(minimum fee of RM500 and renewal of guarantee coverage for a minimum period of 12 months)

Financing Limit

• Minimum : RM100,000
• Maximum : RM3 million

Tenure of Financing
Up to 17 years or until 31 December 2035, whichever is earlier

Interest / Profit Rate
Determined by participating FIs

Type of Facility
Term Loan/ Term Financing , Overdraft/ Cashline-i, Trade Facility and Commercial Card

Participating FIs
Open to all Commercial Banks, Islamic Banks and Development Financial Institutions under the purview of Bank Negara Malaysia

Source of Funds
From the participating FIs

Availability / Application Period
Opened from 1 January 2019 or upon full utilisation of the scheme limit of up to Ringgit Malaysia One Billion (RM1 billion) only or upon expiry of the guarantee tenure on 31 December 2035 whichever is earlier

To assist SME companies in all sectors to gain access to financing from participating Financial Institutions (FIs) to invest in automation and modernisation which forms part of the Industry 4.0

Scheme Limit
RM3.0 billion (on revolving basis until expiry of Scheme)

Eligibility
Open to SME companies from all sectors with at least 51% shares held and controlled by Malaysian citizens and registered with the following:

• Companies Commission of Malaysia either under the Register of Business Act (1956) or Companies Registration Act 1965 and/or the Companies Registration Act 2016 or Limited Liability Partnership Act 2012 (private limited, sole proprietorship and partnership); or
• Respective authorities or district offices in Sabah and Sarawak; or
• Respective statutory bodies for professional services providers

(reference to the guidelines for the definition of SMEs issued by SME Corp Malaysia and certified by the National SME Development Council)

Purpose of Financing
The facility is to be used for working capital as well as for capital expense (CAPEX). The facility cannot be used to refinance existing facility granted by the same or other participating FIs.

The participating FIs and/or SJPP will be responsible for determining the genuineness of the Borrower / Customer based on their respective credit evaluation procedures

Guarantee Coverage
70% guarantee to the financing obtained from the participating FIs (including principal and interest / profit) by the Government of Malaysia

Guarantee Fee
1.0% per annum payable upfront
(minimum fee of RM1,000 and renewal of guarantee coverage for a minimum period of 12 months)

Financing Limit

• Minimum : RM100,000
• Maximum : RM10.0 million only

Tenure of Financing
Up to 17 years or until 31 December 2035, whichever is earlier

Interest / Profit Rate
Determined by participating FIs

Type of Facility
Term Loan/ Term Financing , Overdraft/ Cashline-i, Trade Facility and Commercial Card

Participating FIs
Open to all Commercial Banks, Islamic Banks and Development Financial Institutions under the purview of Bank Negara Malaysia

Source of Funds
From the participating FIs

Availability / Application Period
Opened from 1 January 2018 or upon full utilisation of the scheme limit of up to Ringgit Malaysia Three Billion (RM3.0 billion) only or upon expiry of the guarantee tenure on 31 December 2035 whichever is earlier

Commodity Murabahah is based on the concept of Tawarruq – purchase of an asset and subsequent sale of the same asset to a third party to raise funds. RHBIB accomplishes this through initiating the commodity trading with Broker A for the purchase of a specified commodity. RHBIB will then sell the commodity to the customer at cost + profit. Subsequently, customer will sell the commodity to Broker B for the same amount transacted under the initial Purchase transaction. At the end of the transaction, the Customer will have the finance amount available for his use in the form of Term Financing-i, Overdraft-i and/or Trade Facilities.

The eligibility criteria for obtaining financing are as follows:

Profile of Applicant, Shareholders and Directors

• A business that has been operating for at least 3 years
• The shareholders, directors and the applicant must enjoy good market and credit reputation
• They must be free from any legal proceedings
• Profits recorded in at least one of the last 3 years
• Good management expertise

Payment Capability

• Applicant's business must be viable and be able to generate adequate cash flow to meet its existing and future obligations
• Applicant must have sound financial record as well as good payment record

Capital Commitment

• Shareholders must demonstrate an acceptable level of financial commitment to the business
• At least 50% of the business is owned by the management team

Provision of Collateral

• Where appropriate, collateral is to be provided to demonstrate the commitment on the part of the applicant

• Application Form

The Shariah concepts applicable to UBF-PINTAS-i are:

• UBF-PINTAS-i Product Disclosure Sheet

The Shariah concepts applicable to CMTF-i Full Flexi (Redraw) are:

• Commodity Murabahah Term Financing-i (CMTF-i) Full Flexi (Redraw) Product Disclosure Sheet