Benefits of Guarantee Scheme

	Availability of SME Bank potential customers with good track record for Participating Financial Institution
	Enhancement of customers business credit capability with the complete products offered by SME Bank and Participating Financial Institution

Methodology

	Collaborate with commercial banks
	Guarantee as mechanism between SME Bank and Participating Financial Institution
	SME will be issued a Letter of Guarantee to Participating Financial Institution for customers guaranteed facilities

Eligible Customers

	Existing customers with satisfactory payment track record
	All registered Malaysia controlled SMEs with at least 51% Malaysian Shareholding. (sole proprietorship, partnership and private limited companies)
	Small and Medium SMEs, Micro SMEs are not eligible
	Customer with credit rating between 1-5
	The above eligibility criteria, however is subject to review by the Bank from time to time

Sector / Activities

	Manufacturing & manufacturing related activities
	Services - Information Communication Technology, Construction, Tourism
	Other sectors determined by SME Bank from time to time
	The activities must be Syariah compliant

Guaranteed Facilities

Overdraft's (OD's)

As working capital

Governed by the PFIs' banking policies, guidelines and procedures.

Margin of Financing

Maximum of 90% of the working capital costs requirement

Guarantee Amount

	Minimum: RM100,000
	Maximum: RM1 million

Subject to Single Customer Limit

Terms & Conditions

Terms & condition of SME Bank CGS Islamic Scheme are as per current SME Bank policies and guidelines and will be reviewed from time to time

Duration of Guarantee Cover

Consistent with the duration of the facilities Extension up to 3 years. Thereafter, will be subject to a full review of the accounts.

Guarantee & Cover

100% being covered

	Principal / Purchase price
	Profit
	Penalty / Compensation of late payment
	Others charges per banking practice and charges by Bank Mualamat Malaysia Berhad.

(pdf, 1880 kb)

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