SME Bank

Low Carbon Transition Facility (LCTF) is a financing facility to encourage and support SMEs to adopt sustainability practices for business resilience.

  • Capital expenditure
  • Working capital

SMEs in all sectors committed to transform towards low carbon and sustainable business operations, such as:

  • Purchase / use / rental / maintenance of green certified and sustainable premise / equipment / plant and machineries including energy appliances. renewable energy adoption and waste management technology.
  • Purchase of certified sustainable materials.
  • Hiring of consultant to advise on and expenses for transformation to sustainable business.
  • Expenses to obtain sustainability certification.
  • Sustainability-related training e.g. carbon accounting, sustainability reporting, etc.

Open to qualified SMEs that are classified as ‘Climate Supporting (C1)’ or ‘Transitioning (C2 & C3)’ as per SME Bank’s ESG Policy for Financing and Treasury Related Activities.

Financing Concept
  • Commodity Murabahah Term Financing-i (CMTF-i)
Financing Limit
  • Up to RM10.0 million per SME
  • Up to 10 years
Profit Rate
  • Up to 5.0 % p.a (inclusive of guarantee fee)
Margin of Financing
  • Up to 100%
  • No collateral shall be imposed.
  • Guarantee cover from Credit Guarantee Corporation Malaysia Berhad (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP) is required for this financing.
  • Personal guarantees/ joint and several guarantees.
  • Takaful coverage is mandatory if any asset is given as security for the financing (if applicable). You have the option to select the service offered by our panel Takaful operators or non-panel Takaful operators.
Fees & Charges

Click here for Fees & Charges

Product Disclosure Sheet

Any further enquiries, please contact our Customer Service Centre at 03-2603 7700