Credit Enhancer Scheme (CGC)

Credit Enhancer Scheme (CGC)

Eligibility Criteria

Malaysian-controlled or Malaysian-owned businesses.
Must fall within the definition of SMEs (for details, please click here).
Borrower must have a good credit record.
Franchise businesses can apply under this scheme.

Maximum Loan Limit
Loan of up to RM10.0 million.

Credit Facilities Covered
Term Loan
Overdraft
Bankers Acceptance
Letter of Credit
Trust Receipt
Hire Purchase / Leasing
Export Credit Refinancing (ECR)
Shipping/Performance/Bank Guarantee
Bills Purchased

Lending Rate
The annual lending rate is up to 2% above the Base Lending Rate (BLR) of the lending institutions.
*Lending institutions are free to quote the lending rate if the guarantee cover is 50% or less.

Guarantee Coverage
The CGC guarantee coverage ranges from between 30% to 90% subject to the following:-

Unsecured Portion – Up to 80% (a maximum cover of RM3.0 million)
Secured Portion – Up to 90% (no capping imposed on secured portion)

Guarantee Fee
Unsecured Portion : 2.40% to 4.00% per annum.
Secured Portion : 2.10% to 3.20% per annum.

SMEs with higher risk profiles will be charged higher guarantee fees, whereas SMEs with lower risk profiles will be charged lower guarantee fees. The range observed is to match borrower’s credibility in terms of risk rating with the pricing of the guarantee.

Participating Institutions
All participating lending institutions.

www.iguarantee.com.my

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