MIDF Soft Loan Scheme for Small & Medium Enterprises

For new startups and existing SMEs looking for accessible financing for working capital, fixed asset acquisition and business premise renovation.

MIDF Soft Loan Scheme for Small & Medium Enterprises
Up to 7 years
Interest Rate
from 4% p.a.
Loan type
Interest Type
Flat interest rate

Interest rates

How much the bank charges you based on your loan amount & loan period

You borrowLoan periodAnnual Sales TurnoverInterest Rate
RM50,000 - RM3,000,00012 to 84 monthsRM300,000 to RM50,000,0004% p.a.

Fees & Charges

Interest Rate / APR
As low as 4% p.a. depending on loan amount and period
Stamp Duty


Minimum Annual sales turnover
Maximum Annual sales turnover
Minimum Company Age
2 years
Malaysian Ownership
Who can apply
  • Malaysian Registered Companies.
  • Micro Enterprise,SME

More Information

What can I do with Soft Loan Scheme for Small & Medium Enterprises?

Soft Loan Scheme for Small & Medium Enterprises by MIDF can assist existing and new start-up enterprises who are looking for accessible financing for working capital and fixed asset acquisition such as premises, machinery and software.

But that's not all. SLSME can also be used to cover the cost of business premise renovation or upgrade your storefront for retail trade.

How much can I borrow from this soft business loan?

Depending on the purpose of your financing, the minimum loan amount you can apply for is RM50,000. 

For project and fixed asset financing, the maximum amount you can borrow is RM5 million, whereas RM3 million is capped for working capital and RM500,000 for IT hardware and software upgrades.

For fixed asset, IT hardware and software financing, MIDF can provide up to 90% margin of financing. 

Meanwhile, the margin of financing for working capital ranges between 80% - 100%. Regardless of the margin and borrowing amount, the facility charges a flat interest rate of 4% per annum.

For how long can I borrow from an SLSME business loan?

The best part about this soft loan for SMEs is that you can enjoy a grace period before your monthly instalment payment commence. 

For financing of fixed assets, IT hardware and software, the borrowing period can last up to 7 years, with a 1-year grace period.

Whereas, the maximum tenure for term financing for working capital purposes is 3 years, with a grace period of up to 6 months.

Who can apply for an SLSME business loan?

First of all, you need to be an SME incorporated under the Company Act 1956 or Registration of Business Ordinance, with a valid premises license. 

Your company must also have at least 60% equity held by Malaysians. 

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