Purpose

• Capital expenditure
• Working capital

Eligibilty

Malaysian SMEs in all sectors committed to transform towards low carbon and sustainable business operations, such as:

• Purchase / use / rental / maintenance of green certified and sustainable premise / equipment / plant and machineries including energy appliances. renewable energy adoption and waste management technology.
• Purchase of certified sustainable materials.
• Hiring of consultant to advise on and expenses for transformation to sustainable business.
• Expenses to obtain sustainability certification.
• Sustainability-related training e.g. carbon accounting, sustainability reporting, etc.

Notes:

• Open to qualified SMEs that are classified as 'Climate Supporting {C1}' or 'Transitioning (C2 & C3)' as per SME Bank's ESG Policy for Financing and Treasury Related Activities.

Financing Facilities

• Commodity Murabahah Term Financing-i (CMTF-i)

Financing Limit

• Up to RM10.0 million per SME (combined basis)
• The maximum aggregate financing amount of RM5 million per SME under the BNM's Fund for SMEs does not apply to the LCTF

Tenure

• Up to 10 years

Profit Rate

• Up to 5.0 % p.a (inclusive of guarantee fee)

Margin of Financing

• Working Capital : Up to 100%
• Machinery/ Equipment acquisition (including installation cost)
  • Brand New : Up to 80%
  • Used/ Refurbish/ Recond: Up to 70%

Collateral

• No other collateral shall be imposed.
• Guarantee cover from Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
• Personal guarantees / joint and several guarantees

Takaful

• Takaful coverage is mandatory if any asset is given as security for the financing (if applicable). You have the option to select the service offered by our panel Takaful operators or non-panel Takaful operators.

Fee & Charges

Click here for Fees & Charges

Product Disclosure Sheet

• Low Carbon Transition Facility (LCTF)