Articles courtesy of

SMIDEC:

(Small & Medium Industries Development Corporation)

&

MIDF:

(Malaysian Industrial Development Finance Berhad)

 
 

 

 

 

SOFT LOAN SCHEME FOR SMALL AND MEDIUM ENTERPRISES (SLSME)

 

The SLSME was introduced in December 2001 to promote the development of small and medium enterprises. Existing as well as new start-up companies are eligible to apply for fixed assets and working capital financing under the SLSME.

The fund for the Scheme is channeled from the Government of Malaysia through the Small and Medium Industries Development Corporation (SMIDEC), and the Scheme is implemented by MIDF.

Eligibility Criteria and Main Features

 

 

1. Eligibility:

• SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
• Subsidiaries of public-listed companies with shareholding not exceeding 20%;
• At least 60% equity held by Malaysians; and,
• Possess a valid premises licence.

 

 

2. Sectors:

• Manufacturing
• Manufacturing – related services
• Services (excluding insurance and financial services)

 

 

3. Financing Amount:

• Minimum: RM50,000
• Maximum: RM3 million

 

 

4. Eligible Items:

• Fixed assets and working capital financing;
• Costs incurred for initial store renovation and upgrade of store display for retail trade; and,
• Working capital for companies with confirmed contracts awarded by GLCs, MNCs and the Government including its agencies.

 

 

5. Percentage Financing

• Fixed Assets
• Up to 90% of the cost for new assets; and,
• Up to 65% for used/reconditioned machinery/equipment which shall not be more than 5 years old.
• Working Capital
• Up to 90% for Sales Revolving Credit.
• Up to 100% for Purchase Revolving Credit.

6. Repayment:

• Land and Building - up to 15 years including grace period of up to 2 years.
• Machinery and Equipment - up to 6 years including grace period of up to 1 year.
• IT Equipment - Up to 4 years including grace period of up to 1 year.
• Revolving Working Capital and Factoring - subject to annual review.

7. Interest Rate:

• 2 % per annum on yearly rest.

 

 

ENQUIRY

 

Further information on this Scheme can be obtained from:

 

 

Small and Medium Industries Development
Corporation (SMIDEC)
Aras 20, West Wing, Menara MATRADE
Jalan Khidmat Usaha, Off Jalan Duta
50480 Kuala Lumpur
Tel No: 03-6207 6000
Fax No: 03-6201 6564

E-mail : info@smidec.gov.my
Infoline : 1-300-88-1801
Website : www.smidec.gov.my

 

Or

 

 

SMIDEC (Malaysian Industrial Development Finance Berhad)

21st Floor, Menara MIDF,

82 Jalan Raja Chulan, 50200 Kuala Lumpur,

P.O.Box 12171, 50678 Kuala Lumpur

Tel No: 03-2161 9011

Fax No: 03-2161 5973

Website : http://www.midf.com.my/