Help for Small & Medium Scale Enterprise (SME)

When it comes to SME debt, a nonperforming loan, or the restructure of financing, Malaysians can now benefit from BNM’s plans to help SMEs’ with financing factors which could help develop the SMEs’ in Malaysia.

Financial constrains are one but the many things SMEs and many others in the world face today. Bank Negara Malaysia has then opted to provide SMEs with a solution to this problem:

Depending on the viability of your business, Small Debt Resolution Scheme (SDRS) applicants will be submitted to participating financial institutions to assess to consider facilitating their loan restructuring or loan rescheduling and arranging for new financing, if necessary.

Should these participating financial institutions reject applications of such, the Small Debt Resolution Committee will then take charge to independently assess the ongoing viability of that particular business, then propose loan restructuring or rescheduling methods where eligible.

Additional financing will then be decided by the Board of Committee where necessary. The new financing requirement will be offered under the SME Assistance Facility.

SDRS Financing Details

Small Debt Resolution Scheme (SDRS)

Objective
To provide assistance to viable small and medium scale enterprises (SMEs) that are constrained by non-performing loans (NPLs) by facilitating their loan restructuring or rescheduling and arranging for new financing, if necessary.

Maximum financing rate : 4% per annum
Maximum tenure : Maximum of 5 years
Maximum financing : Up to RM1.5 million per SME
Participating financial institutions / Implementing Ministry / Agency

  1. All commercial banks and Islamic banks
  2. Bank Perusahaan Kecil & Sederhana Malaysia Berhad
  3. Bank Pembangunan Malaysia Berhad
  4. Bank Kerjasama Rakyat Malaysia Berhad
  5. Export-Import Bank of Malaysia Berhad
  6. Bank Pertanian Malaysia Berhad
Eligibility criteria
  • SMEs in all economic sectors;
  • Malaysian owned (at least 51%) companies and institutions registered under the Companies Act 1965, Registration of Business Act 1956, Societies Act 1966 or the Cooperative Societies Act 1993;
  • Business enterprises with full-time employees not exceeding 150 or annual sales turnover not exceeding RM25 million;
  • Aggregate outstanding NPLs with PFIs not exceeding RM3 million and the loans which have turned NPLs must have been taken only for business undertakings (exclude loan taken for share financing and personal consumption); and
  • Applicant must have on-going business.

Guarantee Coverage
80% guaranteed by the Credit Guarantee Corporation Malaysia Berhad (CGC).

Purpose of financing
For working capital and project financing only. The facility cannot be used to refinance the existing credit facilities

Eligible sector / Types of financing
All sectors

For more information, visit http://www.smeinfo.com.my/

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Malaysia Loan

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