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Low Carbon Transition Facility (LCTF)

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


Malaysian 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.


  • The above examples are non-exhaustive
  • 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 (combined basis)
  • The maximum aggregate financing amount of RM5 million per SME under the BNM's Fund for SMEs does not apply to the LCTF


  • Up to 10 years

Profit Rate

  • Up to 5.0 % p.a (inclusive of guarantee fee)

Margin of Financing

  • Working Capital : Up to 100%
  • Machinery/ Equipment acquisition (including installation cost)
    • Brand New : Up to 80%
    • Used/ Refurbish/ Recond: Up to 70%


  • No other collateral shall be imposed.
  • Guarantee cover from Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
  • 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.

Product Disclosure Sheet

Any further enquiries, please contact our Customer Contact Centre at 03-2603 7700 or email

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