What should I know about HSBC Working Capital Term Loan for SME?
HSBC Working Capital Term Loan for SME is a business loan for SME entrepreneurs to finance their working capital for their daily operation needs.
It is crucial for every business to have a stable flow of cash to meet its liabilities as it indicates its overall financial health.
What can I get from HSBC business loan?
HSBC Working Capital Term Loan is an unsecured SME loan with an affordable interest rate, flexible repayment periods and a high margin of financing.
This variable rate business loan is subject to Credit Guarantee Corporation (CGC) approval and a guarantee cover of 70% on principal balance throughout your tenure.
And with that, a guarantee fee of 2.70% p.a. will be charged on a yearly basis payable to CGC, and will be factored into the prevailing board rate.
What are the benefits of this HSBC business loan?
HSBC business loan for working capital has no lock-in period, meaning you can pay off your outstanding loan balance anytime you want at zero fee.
See table below for what you are about to get from this HSBC SME loan:
|Loan Amount||up to RM500,000|
|Loan Tenure||up to 5 years|
|Margin of Financing||100%|
|Interest Rate||BR + 6.75%|
|Effective Rate||10.39% p.a.|
( BR is 3.64% p.a.)
Who can apply for this SME loan?
All companies are eligible to apply for this SME loan from HSBC, provided that you meet the criteria as follows:
- Incorporated and operating in Malaysia
- 67%-controlled by Malaysians
- Minimum turnover of RM500,000 annually
- Minimum years of operation of 3 years since inception
Do I need collateral?
No, as it is an unsecured loan. Insurance or Takaful is also not required.
What are the fees and charges of HSBC Working Capital Term Loan for SME?
These are the fees and charges applied to your HSBC Working Capital Term Loan for SME facility:
- Stamp Duty
- Disbursement Fee
- Late Penalty Fee of 1% p.a. for late payment