Objective of Scheme
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To enable SME Bank to provide new credit/financing facilities to complement existing facilities. The new facilities are for working capital purposes:- |
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Overdraft/ Bai'Inah |
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Letter of Credits/ Wakalah |
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Trust Receipts/ Bai'Murabahah |
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Bills Purchased/ Bai'Dayn | | | | |
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Benefits of Guarantee Scheme
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As a 'SME HUB', SME Bank is now able to offer a complete range of banking products that caters to customer's business needs |
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Capitalizing on commercial bank infrastructure through its: |
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Product expertise |
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Human resource |
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Banking network | |
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Ease funding issue |
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Capitalizing 'Multiplier Effect' of guarantee mechanism |
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'Win-win' situation between Participating Financial Institution and Customers |
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Availability of SME Bank potential customers with good track record for Participating Financial Institution |
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Enhancement of customers business credit capability with the complete products offered by SME Bank and Participating Financial Institution | | |
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Methodology
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Collaborate with commercial banks (Kafalah) |
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Guarantee (Kafalah) as mechanism between SME Bank and Participating Financial Institution |
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SME will be issued a Letter of Guarantee to Participating Financial Institution for customers guaranteed facilities | | | |
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Relationship A Tripartite Arrangement Between SME Bank, PFIs & Customers
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Apply financing |
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Process & approval |
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Issue notification letter and Guarantee letter |
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Disbursement |
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Repayment |
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Claim & Settlement / Subrogation |
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Follow up & Recovery | | |
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Eligible Customers
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All registered Malaysia controlled SMEs with at least 51% Malaysian Shareholding. (sole proprietorship, partnership and private limited companies) |
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Small and Medium SMEs, Micro SMEs are not eligible |
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Customer with credit rating between 1-5 | | |
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Sector / Activities
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Manufacturing & manufacturing related activities |
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Services - Information Communication Technology, Construction, Tourism |
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Other sectors determined by SME Bank from time to time |
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For Syariah Facilities, the activities must be Syariah compliance | |
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Guaranteed Facilities
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(Both Conventional and Syariah Principle) |
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Overdraft (OD)
As working capital
Letter of Credit (LC)
At sight or up to a maximum of 180 days usance for imports and local purchases
Trust Receipt (TR)
Maximum up to 180 days
Bills Purchased (BP)
At sight or up to a maximum of 180 days usance |
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Governed by the PFIs' current banking policies guidelines and procedures. |
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Margin of Financing
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Maximum of 90% of the working capital costs requirement | |
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Guarantee Amount
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Minimum |
: RM100,000 |
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Maximum |
: RM10.0 million |
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Subject to current single customer limit and a maximum of RM5.0 million for OD facility |
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Terms & Condition
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Terms & condition of Skim Jaminan SME Bank are as per current SME Bank policies and guidelines from time to time | |
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Duration of Guarantee Cover
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Consistent with the duration of the facilities |
| Extension up to 3 years. Thereafter, case by case | |
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Guarantee & Cover
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| 100% being covered |
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Principal / Purchase price |
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Profit |
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Penalty / Compensation of late payment |
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Others charges per banking practice and ABM rulling | |
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