SmallBiz Express Scheme (CGC)

SmallBiz Express Scheme (CGC)

Eligibility Criteria

Business must comply with the NSDC’s SME definition;

  • Malaysian-owned companies registered under the Companies Act 1965, the Co-operative Societies Act 1993 and entrepreneurs registered with the Registrar of Business or any other authoritative body;
  • SME should not have any adverse record in respect of any financings with any government agency, CGC or financial institutions;
  • Site visit is compulsory for all applications;
  • For Sole-Prop / Partnership, customer’s age must be between 30-60 years old upon application of the facility. For private limited companies (‘Sdn Bhd’) there is no age limit imposed;
  • Credit Bureau Malaysia credit risk report (CRR) indicating Probability of Default (PoD) = 20%;
  • Business must be in operation for more than one (1) year

Loan Amount and Guarantee Coverage
Loan amount ranging between RM20,000.00 to RM50,000.00 and the guarantee cover shall be up to 80%.

Credit Facilities Covered
Term Financing

Maximum Aggregate Exposure
SMEs can have more than one financing under CGC guarantee with an aggregate exposure not more than RM250,000 per SME. Multiple guarantees can be parked up to five (5) different FIs only (inclusive of new applications).

Cost of Borrowing
The financing rate is capped based on guarantee cover as follows:
-70% to 80% guarantee cover – max of BLR + 1.25%
-60% to 70% guarantee cover – max of BLR + 1.75%.
-50% to 60% guarantee cover – max of BLR + 2.00%.
-50% and below guarantee cover – FI is free to quote.

Guarantee Fee
The guarantee fee imposed is as follows:
-Unsecured Portion : 6.0% p.a.
-Secured Portion : 4.8% p.a.

Participating Institutions
All participating lending institutions.

www.iguarantee.com.my

CAPITAL.MY