SMALL DEBT RESOLUTION SCHEME FOR SMES (CONVENTIONAL AND ISLAMIC)
01 Nov 2003
To provide assistance to viable small and medium enterprises (SMEs) that are constrained by non-performing loans (NPLs), by facilitating loan restructuring and providing financial assistance.
SMEs in all economic sectors that fulfill the following criteria:
- Malaysian owned (at least 51%) companies and institutions registered under the Companies Act 1965, Registration of Business Act 1956, Societies Act 1966 or the Cooperative Societies Act 1993;
- Business enterprises with full-time employees not exceeding 150 and annual sales turnover not exceeding RM 25 million;
- Aggregate outstanding NPL of not more than RM 3 million with commercial banks, finance companies, Islamic banks, Bank Pembangunan dan Infrastruktur Malaysia Berhad, and Bank Industri dan Teknologi Malaysia Berhad;
- The NPLs must only be for business-related loans (to exclude share financing and loans for personal consumption); and
- Applicants must have on-going business.
Participating Financial Institutions
∙ All commercial banks
∙ All finance companies
∙ All Islamic banks
∙ Bank Pembangunan & Infrastruktur Malaysia Berhad
∙ Bank Industri & Teknologi Malaysia Berhad
i. Loan restructuring: NPLs of viable applicants will be restructured, and new financing will be provided if required.
ii. New financing under the Rehabilitation Fund for Small Businesses;
- Allocation – RM 800 million
- Financing rate – 5.0% p.a
- Maximum tenure – 5 years
- Maximum funding per customer – RM 1.5 million
- Purpose of financing
----- Expansion of productive capacity;
-----Working capital; or
-----Both of the above
Financing should not be used for refinancing of existing credit facilities.
Standard application form [PDF, 127K] can be obtained and submitted through any participating financial institutions, ERF Sdn Bhd or SME Special Unit, Bank Negara Malaysia.
SME Special Unit
Level M, Blok C,
Bank Negara Malaysia
Jalan Dato' Onn,
50490 Kuala Lumpur.
Tel: 03-26932330 / 26916539 / 26916971
Source: Bank Negara Malaysia