Managing a business is never an easy thing. However, businesses are good to build the economy of a country. This is why a lot of countries usually would try their best to support businessmen and entrepreneurs so that the chance of succeeding in their pursuits could be increased. Malaysia is no different from the rest. Our country also tries its best to encourage the growth of SMEs in Malaysia by providing business loans and funds to these businesses.
How to Get a Loan to Start a Business in Malaysia?
The answer is to start with the local banks. There are a number of loans and funds offered by various banks in Malaysia. To make matters easier, we have compiled a list of 5 available business funds and loans offered by trusted banks and corporations for SMEs in Malaysia:
1. Bank Negara Malaysia’s Fund for All Economic Sectors
Another business funding option is from the Bank Negara Malaysia (BNM) which offers capital expenditures or/and working capital assistance for all SMEs including Bumiputera enterprises that fulfil the following criteria:
- Registered with the Companies Commission of Malaysia (SSM), authorities/district offices in Sabah and Sarawak or statutory bodies for professional service providers
- Shareholders’ funds not exceeding RM5 million
- Shareholding by Public Listed Companies and Government Linked Companies (if any) shall not exceed 20%
- Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs
Among the benefits of this funding are maximum financing up to RM5 million, maximum tenure of 5 years and maximum financing rate up to 8%. Visit BNM’s website to apply if you own an SME in Malaysia and fit all of the required criteria.
2. Bank Negara Malaysia’s Fund for Micro Enterprises
For this, BNM offers funding for capital expenditures or/and working capital for micro enterprises that fulfil the following criteria:
- Registered with the Companies Commission of Malaysia (SSM), authorities/district offices in Sabah and Sarawak or statutory bodies for professional service providers
- Maximum shareholders’ funds not exceeding RM5 million
- Malaysians residing in Malaysia that hold a minimum of 51% shareholding in the SMEs
Benefits in this funding include maximum financing of RM50,000, maximum tenure of 5 years, financing rate determined by the participating financial institutions (PFIs) as well as no collateral. For more info, visit its website.
3. BPMB’s Tourism Infrastructure Development Fund
Bank Pembangunan Malaysia Berhad or BPMB’s fund is to assist tourism entrepreneurs who wish to develop or expand projects that contribute to the development of the tourism industry. Successful applicants stand to get RM5 million – RM100 million or up to a maximum of 80% of total project cost, whichever is lower. BPMB also offers financing tenure up to 20 years. Plus, the financing rate is 4.0% – 6.0% per annum. It also doesn’t specifically limit its fund offerings to only Malaysian SMEs so if you prefer fundings rather than business loans, do visit its website to read up more.
4. BSN’s Teman Mesra
Bank Simpanan Nasional (BSN) offers a microloan in which the objective is to help micro-entrepreneurs and self-employed individuals who are in the manufacturing, services as well as retail/wholesale retail/wholesale sectors to expand their businesses. This loan can only be used as working capital, capital expenditure or renovation of business premises. Aside from that, the criteria that must be fulfilled in order to qualify are:
- Malaysian owned business
- Micro Enterprise (Sole Proprietorship / Partnership / Private Limited Company including Professional businesses)
- Business has been in operation for at least two (2) years
- Registered with Suruhanjaya Syarikat Malaysia (SSM) / Local Authority (LA) / respective Professional Bodies (for Professional business)
Benefits in this loan include RM5,000 – RM50,000 loan amount, 1 – 5 years of loan period and interest rates offered from as low as 6.38%. Head over to BSN’s website if you own an SME in Malaysia and want to find out more about this loan for your business.
5. CGC’s BizJamin Bumi Scheme
The Credit Guarantee Corporation (CGC) offers a business loan to Malaysians of up to RM15 million as long as the requirements below are met:
- A company registered in Malaysia, is Malaysian-controlled and Malaysian-owned with at least 51% shareholding owned by Bumiputera
- Meet the SME Corporation Malaysia’s definition of an SME
The annual interest rate is up to 2% above the Base Lending Rate (BLR) of the financial institutions. If you need a business loan and have a company in Malaysia, do visit its website to apply.
There you have it. This list only covers a small number of available funds and loans that are offered to SME entrepreneurs in Malaysia. However, hopefully, you will be able to find one that can help to ensure prosperous growth for your business.
