Direct Bank Guarantee Scheme (CGC)

Direct Bank Guarantee Scheme (CGC)

Eligibility Criteria

  • Must fall within the definition of SMEs ( for details, please click here )
  • Malaysian-owned and controlled private limited companies registered under the Companies Act 1965, Sole Proprietorship or Partnership.
  • SMEs who have been awarded with government or government linked agencies contract.

Submission Of Loan Guarantee Applications
All loan guarantee applications are to be submitted directly to CGC using a Standard application form accompanied by the necessary documents as per normal loan processing requirement.

Loan amount ranging between RM50,000 to RM3.0 million.
(Application above RM2.0 million is only applicable to existing borrowers with at least 2 years good track records with CGC)

The guarantee cover is up to 100% and the duration of guarantee cover is to correspond with the tenure of specific Bank Guarantee (BG) to be issued.

Credit Facilities Covered

Bank Guarantee (BG) only issued for the purpose of specific tender/performance bonds for Government, government agencies and Government-Linked Corporation (GLCs) contracts/jobs.

Commission Charged

0.6% per annum subject to a minimum of RM50.00 per issuance.

Guarantee Fee

Unsecured portion : 0.75% to 5.75% per annum.
Secured portion : 0.50% to 3.60% per annum.

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

Refund policy

100% refund of guarantee fees may be accommodated if the notification of cancellation is received from the Bank within three (3) months of the anniversary date/date of Letter of Guarantee (LG). 50% refund of guarantee fees may be accommodated only for superceding, renewal and unmaterialised cases, if the notification of cancellation is received from the Bank between three (3) to six (6) months from anniversary date/date of Letter of Guarantee (LG).

Processing Fee
RM300.00 for each successful application.

Participating Institutions
Maybank, RHB Bank, EON Bank, AmBank, Affin Bank and CIMB Bank.

www.iguarantee.com.my

CAPITAL.MY