Soft Loan Scheme (4% Interest)
A soft loan is a loan with a below-market rate of interest or have lenient terms such as extended repayment periods. Soft loans are usually provided by governments to projects that meet nation’s objectives such as promoting the development of small and medium enterprises.
Use of Funds
- Project financing (up to RM5 million)
- Acquisition of fixed assets (up to RM5 million)
- Working capital financing (up to RM3 million)
Source of Fund
- Government of Malaysia channeled via SME Corporation Malaysia to MIDF
- Open to existing company as well as newly start-up enterprises
- Registered under the Companies Act 1965 or Registration of Business Ordinance 1956
- At least 60% equity held by Malaysians
- Possesses a valid premises licence
- Manufacturing Sector – Sales turnover must not exceed RM50 million or full-time employees 200 workers or less.
- For Services and Other Sectors – Sales turnover must not exceed RM20 million or full-time employees 75 workers or less.
- Land & building (up to 25 years)
- Plant & machinery (up to 7 years)
- Working Capital
- Purchase Revolving Credit & Sales Revolving Credit (up to 150 days)
- Term Financing (up to 3 years)
- Factoring (up to 150 days)