| Franchise Financing Scheme |
| Eligibility criteria | - All Malaysian owned and controlled companies with net assets or shareholders' funds not exceeding RM1.5 million.
- The existing total credit facilities of the borrower should not exceed RM7.5 million. Borrower should not have any adverse record in respect of borrowing from any other financial institution or other agencies
|
| Type of loan | - Term loan
- Overdraft
- Trade financing
- Any other credit facilities determined from time to time by CGC
|
| Maximum loan amount (per customer) | - RM10.0 million - manufacturing sector
- RM7.5 million - priority sector
- RM5.0 million - other sectors
|
| Maximum lending rate | The prescribed rate charged by the Financial Institutions will not exceed BLR + 1.5%, while the actual cost to the borrower will be reduced through payment of subsidized interest whereby KPUn via CGC will pay the difference for the loan interest in the anner as follows : | Loan Duration | Interest Rate | Subsidised rate | Cost to the Borrower (Estimated BLR is 10.5%) | | Year 1 & 2 | BLR + 1.5% | 6% | 6% | | Year 3 | BLR + 1.5% | 4% | 8% | | Year 4 | BLR + 1.5% | 2% | 10% | | Year 5 | BLR + 1.5% | - | 12% | |
| Maximum tenure | 5 years |
| Guarentee coverage | Up to 80% for unsecured portion and 90% for secured portion |
| Guarantee fee | | Total Credit Facilities | Unsecured Portion | Secured Portion | | Loans up to RM1 million | 0.75% | 0.50% | | Loans above RM1 million | 1.00% | 0.50% | |
| Participating Financial Institutions | - Malayan Banking Berhad
- Bumiputra-Commerce Bank Berhad
|
| Application procedure | - The franchisor must be registered with KPUn before the franchisee can apply through this scheme
- KPUn will ensure the validity of the franchisor and legal relationship between franchisor and franchisee
- KPUn will compile the complete loan application together with working paper and forward it to financial institution to process
- Upon receipt of the guarantee application from financial institution, CGC will process and issue the guarantee letter accordingly
|
| Other Information | All enquiries on the guarantee schemes should be forwarded to CGC at the following address:
CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD
Aras 13-16 Bangunan CGC
Kelana Business Centre
97 Jalan SS7/2
47301 Petaling Jaya
Selangor Darul Ehsan Tel: +60 3 7806 2300
Fax: +60 3 7806 3308
E-mail: mailbox@cgc.gov.my |
