Introduction

i-REACH is a special contract financing scheme to finance short term contract of construction, civil, mechanical, engineering, landscaping and other simple contract. It is an affordable and complete financing package that requires no collateral. It offers working capital financing and bank guarantee to support contractors to perform and deliver the project within the stipulated contract period.

Benefit

  • Combination of working capital financing and bank guarantee
  • No collateral
  • Fast approval
  • No processing fee, only 0.10% facility fees
  • Financing amount from RM50,000 up to RM1.0 million (including the Kafalah Bank Guarantee)
  • Competitive profit rate as low as 1.00% – 1.50% per month for working capital and service charge of 0.125% per month or minimum of RM100.00 for bank guarantee

 

Salient Features

Purpose of Financing

  • To finance construction, civil, mechanical, engineering, landscaping and other simple contract awarded by Federal Government, State Government, Government Agencies, Government Links Companies (GLCs) and its subsidiaries

 

Eligibility

  • Applicant must be Small & Medium Enterprise with good credit records
  • Obtained contract of construction, civil, mechanical, engineering, landscaping and other simple contract
  • Contract awarder must be Federal Government, State Government, Government agencies, GLCs and its subsidiaries
  • Contract period is short term i.e.not more than 12 months

 

Facility

Kafalah Bank Guarantee For Performance Bond as required in the contract
Bai’ Murabahah For working capital requirement (pre-implementation financing)

 

Margin of Financing

Kafalah Bank Guarantee 100% from Performance Bond amount as required by contract awarder
Bai’ Murabahah 80.0% from contract value or 100% from actual cost, whichever is lower

 

Tenure

Kafalah Bank Guarantee As per requirement by contract awarder
Bai’ Murabahah Up to 180 days repayment period

 

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