What can I get from Agrobank Term Financing-i?
Agrobank Term Financing-i is a capital financing facility based on the Islamic concept of Tawarruq which is offered to small business owners who carry out activities and/or projects that are relevant to the agriculture sector.
Depending on the bank's approval and your lending profile, Agrobank can provide financing to a maximum of 100% of the total project cost.
What can I finance with Agrobank Term Financing-i?
There are many hurdles that small business entrepreneurs face when they want to grow their businesses.
With this Term Financing-i, you can use the facility for all Shariah-compliant purposes such as follows:
- To purchase assets, goods, or services
- To redeem the assets
- To obtain the working capital
- For refinancing
- For restructuring
Who can apply for Agrobank Term Financing-i?
Individuals interested in applying for this erm financing must be Malaysian citizen, who is also a resident in the area of business.
You are also required to meet these requirements:
- Aged between 21 years to 60 years old
- Minimum 2-year business operation
- Part-time or full-time micro-entrepreneurs
Do I need a guarantor or collateral?
Yes. You are required to provide a guarantor and/or pledge collateral when applying for this capital financing.
In case you have difficulty meeting your monthly obligations, these securities can be used to cover the outstanding loan balance.
You are also highly encouraged to take up Skim Takaful Kredit from Agrobank's panel of Takaful providers. This Takaful plan is intended to mitigate the burden of indebtedness in the event of death and TPD.
Are there fees and charges I should know?
This capital financing facility charges you a Brokerage Fee of RM7 for every RM1 million of commodity purchasing amount since this term financing facility follows the concept of Commodity Murabahah (via Tawarruq).
Additionally, a Stamp Duty fee as per the Stamp Act 1949 (Revised 1989) will also be charged upon approved financing, as well as any related Legal and Disbursement Fees.
Not to mention, a late payment fee of 1% per annum when you are behind with your instalment.
How can I pay back the instalment?
The payment of your capital term financing facility instalments must be made on time and in full as stipulated in the financing agreement.
This payment can be made via savings account/current account deduction or money transfer via ATM and cash deposit machine.
