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Soft Loan For SMEs


The SLSME was launched in December 2001 to promote the development of small and medium enterprises in Malaysia. This Scheme assists existing as well as newly start-up enterprises in project, fixed assets and working capital financing.

The fund for this Scheme is channelled by the Government of Malaysia via SME Corporation Malaysia to MIDF for the implementation of the Scheme.

Eligibility Criteria and Main Features

1. Eligibility:


  • SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
  • At least 60% equity held by Malaysians;
  • Possesses a valid premises licence ; and,
  • SMEs with shareholdings not exceeding 20% held by public-listed companies (only if applicable).


2. Sectors:


  • Manufacturing.
  • Manufacturing-related services.
  • Services (excluding insurance and financial services).


3. Financing Amount:


  • Minimum: RM50,000.
  • Project Financing - Maximum RM5 million. Fixed Assets Financing - Maximum RM5 million.
  • Working Capital Financing - Maximum RM3 million. IT Hardware/Software - Maximum RM500,000.


4. Items Eligible For Financing:


  • Industrial/Commercial land and factory/business premises construction, ready-built factories/business premises, plant, machinery/equipment and IT hardware/software.
  • Costs incurred for initial store renovation and upgrade of store display for retail trade.
  • Working capital.


5. Percentage Financing:


Fixed Assets/IT Hardware/Software:-

  • Up to 90% of the cost of new assets.
  • Up to 65% for used/reconditioned machinery/equipment which are not more than 5 years old.


Working Capital:-

  • Up to 100% for Purchase Revolving Credit.
  • Up to 80% for Sales Revolving Credit.
  • Up to 90% for Term Financing.


6. Repayment:


Fixed Assets/IT Hardware/Software:-

  • Land & building – up to 25 years including grace period of up to 2 years.
  • Plant & machinery & equipment – up to 7 years including grace period of up to 1 year.
  • IT hardware/software – up to 4 years including grace period of up to 1 year.


Working Capital:-

  • Purchase Revolving Credit & Sales Revolving Credit – up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible borrowers.
  • Term Financing - up to 3 years including grace period of up to 6 months.


7. Interest / Profit Rate:


  • 4% per annum on yearly rest.


Online Financing Application


For further information, please contact:

Malaysian Industrial Development Finance Berhad ("MIDF")
Level 15, Menara MIDF
82, Jalan Raja Chulan
50250 Kuala Lumpur

Tel : 03 - 2173 8598
Fax: 03 - 2772 1911


SME Corporation Malaysia,
Level 6, SME 1, Block B 
Platinum Sentral
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur.

Info Line: 1300-30-6000
Fax Line: 03-2775 6001

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