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Young Entrepreneur Fund (YEF) is a special fund allocated by the Government as part of its continuous strategy of acculturation and creation of new entrepreneurs among Malaysian youth.The purpose of this fund is to provide alternative access to the young entrepreneurs in obtaining financing to start their new business as well as for the needs of their existing business.
Financing Concept
Based on Syariah financing concept (e.g. Bai’ Inah, Bai’ Bithaman Ajil, Ijarah, Ijarah Thummal Bai’, Bai’ Istisna’)
Purpose & Margin of Financing
Working Capital Requirement
Types of Working Capital
Margin of Financing
Working Capital – purchases of raw materials, stocks, overhead cost, advertising & promotion etc Up to 100%

Note:

  • Reimbursement is allowed for expenses not more than 3 months old at the point of financing approval
Purchase of Assets for Business Operations
Types of Asset
Margin of Financing
Loose tools, machinery & equipment, office equipment etc
  • Brand New
Up to 95%
  • Used / Reconditioned
Up to 70%

Note:

  • Refinancing is not allowed
  • Reimbursement is allowed for expenses not more than 3 months old at the point of financing approval
Financing limit
Minimum : RM20,000
Maxiimum: RM100,000
Tenure
Up to 7 years including maximum 1 year grace period
Net Profit Rate
5% per annum (Annuity Monthly Rest)
Eligibility

  • Malaysian youth between 18 to 30 years of age, owning a business
  • The business is registered with Suruhanjaya Syarikat Malaysia (SSM) under a sole-proprietorship or partnership firm, or a Sdn Bhd company
  • For a partnership firm or a Sdn Bhd Company, the youth applicant must hold majority shares of more than 51% AND is the key decision maker
  • Minimum possession of entrepreneurship / vocational certificate
  • Those without entrepreneurship / vocational certificate could be considered through the acquisition of entrepreneurship training from Centre for Entrepreneur Development and Research (CEDAR), SME Bank
  • Start-up companies/firms, defined as in operations less than 1 year, may be considered
Security & Collateral
Security & Collateral
Company
Firms
Security Documents Joint & Several Guarantee Facility Agreement
Facility Agreement
Cash Collateral Minimum 10% Cash Collateral ( 1 : 10 )
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