Small Loans For Businesses
Small Entrepreneur Guarantee Scheme (SEGS).
This scheme was set up to assist small entrepreneurs who have viable business but lack the collateral to obtain financing from financial institutions where Credit Guarantee Corporation Malaysia Bhd (CGC) acts as a guarantor.
This scheme is backed by Bank Negara Malaysia. Loan amounts range between RM10,000 and RM50,000. Interest rate is 1.5 % above the Base Lending Rate of the financial institution.
To be eligible for this scheme, your company must be Malaysian owned (at least 51% owned by Malaysian(s)) and registered under the Registrar of Companies.
To apply for SEGS, you must submit your application to a participating bank directly. If the bank approves your application, it will then forward it to the Credit Guarantee Corporation (CGC) which will act as a guarantor for your loan.
Amanah Ikhtiar Malaysia (AIM).
AIM, established in 1987, is one of the oldest and one of the largest Grameen Bank replications in Asia. It was set up with a charter ‘to disburse small loans on reasonable terms exclusively to the very poor households to finance additional income-generating activities’.
AIM gives out loans up to RM10,000.
Criteria for eligibility: Household income is two-thirds below the poverty line defined as RM285 monthly in Peninsular Malaysia and RM344 monthly in East Malaysia.
- No guarantor and no collateral is required.
- No interest is charged on the loan taken.
Repayment must be made on a weekly basis.
For further information, call 03-20940805.
Tekun National Foundation (Yayasan Tekun Nasional)
Loans of up to RM20,000 are only given out to Bumiputera small entrepreneurs. No guarantor and no collateral is required. No interest is charged on the loan.
Criteria for eligibility:
- Bumiputera entrepreneurs must be aged between 18 and 60.
- Applicant must have a valid business license.
- Applicant must be working full-time in the business and he/ she should not possess any bad records with any financial institution.
A loan must be fully settled before you can be considered for another loan under this scheme.
Forms for loan applications can be printed from the website. For details, call 03-26925185.
Grants of between RM1,000 and RM3,000 are given out to low-income women to either start a home business or expand their existing business.
Among the businesses supported by the grant are:
i. Food: including food stall and food kiosk.
ii. Frozen food like pau, curry puff, pizza, popia, etc.
iii. Snack: kerepek, mini curry puff
The project shall recommend various businesses for the borrower if she is not certain about the kind of business she can venture into. For further details, click here.