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.