A business owner can have a range of reasons why they want to take up a business loan. But one thing is for sure, a business loan can help you to expand your business which in turn, results in better efficiency and profitability.
So, if you’re looking for a business loan to boost your business even more, Alliance Bank might just offer one of the best options in the market. Check out this review of Alliance Bank Digital SME Loan below.
Alliance Bank Digital SME 8% Cashback Campaign
For a limited time only, approved applicants of Alliance Bank Digital SME Loan may stand a chance to get 8% Cashback exclusively by Alliance Bank.
This promotion runs from 10 October 2023 to 9 January 2024 (“Campaign Period”), subject to the campaign's terms and conditions.
Who is qualified for this promotion?
This campaign is open to all SME customers (new-to-bank or existing-to-bank customers) who apply for a new Alliance Bank Digital SME ("Facility) through Alliance Bank’s website or authorised partners.
To be eligible, the Facility applied must be a minimum of 2 years of tenure, approved by the Bank and accepted by the customer during the Campaign Period, and take up a life insurance product as offered by the Bank's appointed insurer.
Those who are not eligible for this promotion include the following:
- Customers who have participated in other promotional offers on preferential rates for the Facility during the Campaign Period; or
- Customers whose account(s) with the Bank are unsatisfactorily conducted or breached any agreements with the bank; or
- Any other persons whom the Bank may exclude at its absolute discretion according to its internal policies.
How to be eligible for the 8% Cashback?
The 8% Cashback is up for grabs on the total interest payable on the approved and already disbursed Financing Facility during the Campaign Period.
That said, to be entitled to the Cashback, you as the Eligible Customer must pay the Facility's monthly instalment amount on or before the due date during the entire tenure of the said Facility (“Qualified Customers”) before being eligible for the 8% Cashback.
When will the 8% Cashback be credited to my account?
Based on the T&C, the Cashback will be received from the seventh month of the Facility tenure until the sixth month preceding the last month of the Facility tenure ("Cashback Period").
For a better understanding, there is an illustration in the T&C that you can refer to.
Can you show me the calculation of the Cashback?
For more details about the calculation, you can find the illustration in the Campaign T&C here.
Where can I reach out to for more information?
For any questions, please feel free to give the Bank a call or you can visit their website to find out more details about the campaign/promotion.
What is Alliance Bank Digital SME Loan?
The Alliance Bank Digital SME Loan is a term business loan that offers small and medium business owners high financing amounts with low interest rates to further grow their business.
What differentiates this loan from other business loans out there in the market is that you are not required to provide any collateral, and you can apply it online wherever and whenever. Considering the pandemic we’re facing, it’s definitely feasible!
Let’s jump into the details of the loan. Depending on how much you want to expand your business, Alliance Bank offers a couple of financing amount options with choices of loan tenures, interest rates, and effective interest rates.
The first option of financing amount is from a minimum RM20,000 up to RM500,000 for a period between 1 year to 7 years maximum. Besides that, the interest rates are flat and are from 5.9% p.a. (T&Cs apply) to 13.78% p.a. On the other hand, the effective interest rates are between 10.42% to 24.53% p.a. You may find the interest rate considerably high, but you have the flexibility of early settlement for this first option!
As for the second option, the financing amount is from RM201,000 to as high as RM1,000,000. But the minimum tenure period is 3 years unlike the former above, and 7 years is the maximum loan tenure. The interest rates are slightly different too which is from BLR + 3.00% p.a. to BLR + 3.50% p.a., while the effective interest rates are from 9.67% to 10.17% p.a. And contrary to the first option above, early settlement is not allowed as a 2-year lock-in period is applied.
For better clarity, kindly refer to the table below:
|Financing amount||From RM20,000 to RM500,000|
(See PDS here)
|> RM201,000 to RM1,000,000|
(See PDS here)
|Loan tenure||1 year - 7 years||3 years - 7 years|
|Interest rate||*5.90% to 13.78% p.a. flat||BLR + 3.00% p.a. to BLR + 3.50% p.a.|
(Effective June 2023, the BLR is 6.67% p.a.)
|Effective interest rate||10.42% to 24.53% p.a.||9.67% to 10.17% p.a.|
|Early settlement||Yes||No (2-year lock-in period)|
*T&Cs apply. The rate is subject to the Bank’s eligibility criteria.
Disclaimer: The actual amount of financing, tenure, and interest rate to be provided by Alliance Bank is dependent upon credit evaluation by the Bank.
I want to know more about this business loan
If you wish to know more about Alliance Bank Digital SME Loan, we have a FAQ compiled for you. You can take your time to read and get yourself familiar first!
You can even find a few tips to improve your chances of loan approval too. Just click here to find out more.
Is there a lock-in period for this loan?
There is no lock-in period for approved loan amounts below RM500,000.
However, a 2-year lock-in period will apply to the approved loan amounts above RM201,000.
Please refer to the table below for better clarification:
|Up to RM500,000||Above RM201,000|
|Lock-in period||No lock-in||2 years|
|Penalty on redemption||Not applicable|| Within the first 2 years: 2% of the approved loan amount|
After 2 years: 1-month notice
What are the charges that I need to pay to apply for this loan?
Before you submit your application online, there are a couple of charges that you should take note of. They are:
Stamp duty fee: 0.5% of the whole loan amount
Documentation fee: RM500. It will be waived if you apply for a loan of RM100,000 and below
Are there key benefits that I should know about?
Yes, there is! When your application for Alliance Bank Digital SME Loan is approved, you can gain access to Alliance BizSmart Solution where you can benefit from its various business solutions and exclusive privileges.
This benefit can help boost your business by providing great support which includes but is not limited to the following:
- Assist you in acquiring new customers
- Improving the efficiency of your business
- Assist in developing, and upskilling your employees, and much more!
Another benefit that you get to enjoy with your approved loan is the Support Lokal initiative which can help local SME owners reach a broader audience. You can get your hands on support such as digital branding, marketing, and all things e-commerce.
Am I eligible to apply for this business loan?
You’re eligible to apply for Alliance Bank Digital SME Loan if your business is registered in Malaysia with a minimum of 1 year in business.
Not only that but at least one (1) director/shareholder/owner of the business should be between 21 to 60 years old.
All of the directors or shareholders of your company are required to be guarantors.
For loan applications up to RM200,000, the shareholder must be a Malaysian citizen. For loan amounts above RM200,000, at least 51% of shareholding must be by Malaysians.
Note: Other supporting documents may be required, subject to the Bank’s discretion.
How can I apply for an Alliance Bank Digital SME Loan?
If you’re keen to apply for Alliance Digital SME Loan, you can do so by completing the RinggitPlus WhatsApp chatbot journey and submitting your latest 6-months company bank statement (in PDF) within 3 days.
If your loan application is shortlisted, you will receive an invitation to attend a virtual interview with Alliance Bank.
Here is the step-by-step guide to applying online:
1. Complete the RinggitPlus WhatsApp Chatbot journey and submit a bank statement within 3 days
2. Alliance Bank will contact you within 3 working days once the application is shortlisted
3. Attend a virtual interview with the bank