Business Premises Financing Scheme

 

1.

What is this product about?

This Scheme is to finance the purchase of shop houses/office space or factories whether completed or still under construction.
   
2.

What do I get from this product?

Margin of Financing

 :
Tenure : Up to 20 years with a maximum grace period of 3 years (only for premises under construction)
Financing Amount : Minimum of RM 100,000 and maximum RM 5.0 million
Profit Rate :

Profit rate is based on the current Base Financing Rate (BFR) and gradually adjusted (tier) based on risk rating as follows:

Note:
The profit rate for the first and second year (Y1 and Y2) is available only for building/premises under construction.
   
3.

What are the Shariah concepts applicable?

Bai’ Bithaman Ajil : Fixed property financing for buildings/premises that are already completed
Bai’ Istisna : Fixed property financing for buildings/premises that are still under construction

 
4.

What are my obligations?

  • Monthly repayment.
  • Total repayment (financing amount + profit) that you will be obligated to make is not more than the Selling Price agreed upfront (as per Bank’s Letter of Offer).
   
5.

What if I fail to fulfil my obligation?

You will be charged a non-compounding compensation (ta’widh) of 1% per annum on the monthly instalment in arrears or any other method approved by Bank Negara Malaysia,  the Association of Islamic Banking Institutions in Malaysia (AIBIM) and SME Bank Shariah Committee.  Please refer to the other obligations stated in Bank’s Letter of Offer.
   
6.

What at the fees and charges I have to pay?

Stamp Duties : As per Stamp Act 1949 (Revised 1989).  This fee is included in the financing package, subject to terms and conditions.
Processing Fees : Bank may impose Processing Fee on application for the purchase or construction of commercial and industrial properties above RM250,000. However, the Bank may not impose fee for processing of financing application for the purchase of land.
Legal Fees : Actual legal fee from fee scale provided by Bank’s panel lawyer.  This fee is included in the financing package, subject to terms and conditions.
Mortgage Reducing Term Takaful (MRTT) : Only applicable for individual /sole proprietorship/partnership. Not compulsory for company.
Valuation Fee : Actual valuation fee imposed by Bank’s panel of valuer.  This fee is included in the financing package, subject to terms and conditions.

 
   
7.

What if I fully settle the financing before its maturity?

There is no penalty imposed for early full settlement.  However, the Bank may impose charges that reflect reasonable estimate of costs as per Bank Negara Malaysia “Guidelines on Ibra” For Sale Based Financing.
   
8.

Do I need any Takaful coverage?

You are required to obtain Takaful coverage from Bank’s panel of Takaful operators. 

For MRTT, the actual contribution cost is included in the financing package, subject to terms and conditions.  Notwithstanding this, you may be required to obtain other suitable Takaful coverage as stipulated in the Bank’s Letter of Offer.
   
9.

What are the major risks?

The Bank shall proceed with legal action should you fail to service your financing repayment.

If you have problems to fulfil your financing obligations, please contact and discuss with us.
   
10.

What do I need to do if there are changes in my contact details?

It is important that you inform us of any changes in your contact information to ensure that all correspondences reach you in a timely manner.
   
11.

Where can I get further information?

Should you require additional information of the product, please refer to our brochures, which is available at our branches nationwide and our website at www.smebank.com.my or call our Hot Line 1800 88 3131.

If you have any complaints on our products or service level, you may also write to us at the following address:
Bank Perusahaan Kecil & Sederhana Malaysia Berhad
Menara SME Bank, Jalan Sultan Ismail
P.O.Box 12352
50774 Kuala Lumpur
   
12.

Other financing package available:

The Bank’s do provide assets and working capital financing, contract financing, i-Cash and dedicated product programs such as i-SPLASH, i-REACH and i-SURF.