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 fixed assets, IT software/hardware 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-related services.
Services (excluding insurance and financial services).

3. Financing Amount:

Minimum: RM50,000.
Maximum: RM3 million.
IT Software / Hardware – Minimum : RM 50,000 Maximum : RM 500,000

4. Items Eligible For Financing:

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

5. Percentage Financing:

Fixed Assets / IT Software / Hardware

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.

6. Repayment:

Fixed Assets / IT Software / Hardware

Land & building – up to 15 years including grace period of up to 2 years.
Plant & machinery / equipment – up to 6 years including grace period of up to 1 year.
IT software / hardware – 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.

7. Interest / Profit Rate:

4% per annum on yearly rest.

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