SME Banking Division Financing Options Quiz

SME Definition

• An SME is an entity registered with SSM or other equivalent bodies
• Excludes:
  • Public-listed companies on the main board
  • Subsidiaries of:
    • Publicly-listed companies on the main board
    • Multinational corporations (MNCs)
    • Government-linked companies (GLCs)
    • Syarikat Menteri Kewangan Diperbadankan (MKDs)
    • State-owned enterprises

Bank Islam SME Banking Overview

• SME Banking Division was established on 01 January 2018
• SME financing portfolio is divided into two financing thresholds between Commercial Banking and SME Banking
• SME financing portfolio of more than RM2.5 million is processed by Commercial Banking, while below RM2.5 million falls under SME Banking

SME Financing

• Minimum financing amount: RM75,000
• Maximum financing amount: RM1.0 million
• Financing tenure: Up to 7 years
• 80% of the financing amount is guaranteed by the Government of Malaysia via SJPP

BIZ FINANCING Eligibility Criteria

• At least 51% shares must be owned by Malaysians
• Business must have at least 2 years of operation
• Open to Sdn Bhd, Sole Proprietor, Partnership, and Professional Services Providers

BIZ FINANCING Products Features

• Financing limit: From RM100K to RM2.5mil
• Financing types:
  • Term Financing
  • Cash line-i
  • Trade Facility
• Collateral requirements:
  • Upfront cash deposit (30%) from financing amount
  • Sinking fund: up to 50% of guarantee coverage
  • 80% government guarantee (SJPP)
  • Joint & several guarantee (director/shareholders)

TNB Vendor Program

• Eligibility criteria:
  • Local business entity
  • Licensed and Registered Vendors of TNB
  • Type of Contract: Supply of Goods and Services related
  • Contract Awarder: Tenaga Nasional Berhad (TNB)
• Limit per contractor: RM2 million
• Collateral requirements:
  • Assignment of contract proceeds between Bank Islam and customer
  • Irrevocable Letter of Notification from contractors to TNB

Other Offerings

• Business Premises Financing Facilities:
  • Term Financing (Business Financing-i)
  • Business Cash Line-i
  • Multi Trade Facility
• Benefits:
  • Attractive financing rate
  • No processing fee (SME only)
  • Fast approval
  • No commitment fees on unutilized amount for Business Cash Line-i facility
  • Rebate on the difference between ceiling rate and effective rate
• Procurement & Contract Financing Facility:
  • Multi Trade Facility for required contracts
  • Business Cash Line-i to cover general expenses, overheads, administrative and sub-contracts wages
  • Bank of Guarantee-i for the issuance of Performance, Advance Payment and Tender Guarantee
• Trade Facilities:
  • Trade working Capital Financing-i
  • Accepted Bills-i
  • Trade Tawarruq-I
  • Bill of Exchange Purchase-i
  • Export Credit Refinancing-i
  • Letter of Credit-i
  • Inward Letter of Credit-i
  • Letter of Credit Transfer-i
  • Documentary Bills for Collection-i
  • Standby Letter of Credit-i
  • Shipping Guarantee-i
  • Bank Guarantee-i

Eligibility Criteria for Sole-Prop/Partnership/Professional Services Providers

• Minimum annual turnover: RM500K per annum
• Recognized based on 80% of annualized credit turnover of 12 months’ bank statements

Test your knowledge on financing options offered by the SME Banking Division, including Term Financing, Business Cash Line, and Multi Trade Facility. Explore the benefits and margin of financing details provided by the division.