Skim Jaminan SME Bank

Objective of Scheme

To enable SME Bank to provide new credit/financing facilities to complement existing facilities. The new facilities are for working capital purposes:-

Overdraft/ Bai'Inah

Benefits of Guarantee Scheme

	As a 'SME HUB', SME Bank is now able to offer a complete range of banking products that caters to customer's business needs
	Capitalizing on commercial bank infrastructure through its:
	Product expertise
	Human resource
	Banking network
	Ease funding issue
	Capitalizing 'Multiplier Effect' of guarantee mechanism
	'Win-win' situation between Participating Financial Institution and Customers
	Availability of SME Bank potential customers with good track record for Participating Financial Institution
	Enhancement of customers business credit capability with the complete products offered by SME Bank and Participating Financial Institution

Methodology

	Collaborate with commercial banks (Kafalah)
	Guarantee (Kafalah) as mechanism between SME Bank and Participating Financial Institution
	SME will be issued a Letter of Guarantee to Participating Financial Institution for customers guaranteed facilities

Relationship A Tripartite Arrangement Between SME Bank, PFIs & Customers

1	Apply financing
2	Process & approval
3	Issue notification letter and Guarantee letter
4	Disbursement
5	Repayment
6	Claim & Settlement / Subrogation
7	Follow up & Recovery

Eligible Customers

	Existing customers with satisfactory payment track record
	All registered Malaysia controlled SMEs with at least 51% Malaysian Shareholding. (sole proprietorship, partnership and private limited companies)
	Small and Medium SMEs, Micro SMEs are not eligible
	Customer with credit rating between 1-5

The above eligibility criteria, however is subject to review by the Bank from time to time

Sector / Activities

	Manufacturing & manufacturing related activities
	Services - Information Communication Technology, Construction, Tourism
	Other sectors determined by SME Bank from time to time

For Syariah Facilities, the activities must be Syariah compliance

Guaranteed Facilities

(Both Conventional and Syariah Principle)

Overdraft (OD)

As working capital

Governed by the PFIs' current banking policies guidelines and procedures.

Margin of Financing

Maximum of 90% of the working capital costs requirement

Guarantee Amount

	Minimum: RM100,000
	Maximum: RM1 million

Subject to current single customer limit

Terms & Condition

Terms & condition of Skim Jaminan SME Bank are as per current SME Bank policies and guidelines from time to time

Duration of Guarantee Cover

Consistent with the duration of the facilities Extension up to 3 years. Thereafter, case by case

Guarantee & Cover

100% being covered

	Principal / Purchase price
	Profit
	Penalty / Compensation of late payment
	Others charges per banking practice and ABM ruling

 

 

(pdf, 1880 kb)

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