Objectives
- To assist entrepreneurs who have viable projects but lack the collateral to obtain the required loans/financing amount.
Eligible Borrowers
- Malaysians
- Individuals or group of individuals
- Malaysian-controlled or Malaysian-owned businesses.
- Businesses classified as SME
Eligible Credit Facilities
- Eligible loans/financing facilities are those granted without any collateral (i.e. “clean “loans) and those, which are partially secured.
- Loans/financing that is fully secured is not eligible for guarantee cover.
- The guarantee is applicable only for new or additional loans.
- Existing non-CGC loans shall not be eligible for guarantee unless additional loans are granted.
Guarantee Limit
- Ranges between 30% to 70% with multiple of 5% subject to the following:
Secured Portion | 30% to 70% of the secured portion. There is no capping imposed on the secured portion |
Unsecured Portion | 30%-60% of the unsecured portion. Maximum cover of up to RM3.0 million per customer (inclusive the guaranteed loans from other institutions). |
Financing limit
- Total credit limit eligible for guarantee to a single borrower (based on individual company basis) is up to RM10.0 million inclusive the other loans from other institutions
- The minimum loans/financing amount eligible for guarantee (non-collateral) must be more than RM50 mil.
Financing Period
- Term loan/financing – up to maturity
- Revolving loan/financing – maximum 3 yrs from the date of Guarantee Certificate
- Renewal guarantee of revolving loan/financing must be made 3 months before the expiry date
Guarantee Fees
- Guarantee fees are imposed as follows:
Types | Unsecured portion | Secured portion |
Conventional | 2.40% to 3.00% | 2.10% to 2.70% |
Islamic | 1.5% to 3.00% | 1.00 % to 2.5% |
