SLSME to assist existing & new start-up companies in project
26 Oct '07
4 min read
Malaysian Industrial Development Financial Berhad (MIDF) is designated by the Government to disburse and manage the government-provided special loan schemes with fixed interest rates ranging from 3% to 7%. MIDF provides medium and long-term financing for new projects, expansion, modernisation and relocation programmes.
Soft Loan For Small And Medium Enterprises (SLSME)The fund is aimed at promoting the development of small and medium enterprises(SMEs)in Malaysia.
This soft loan scheme is to assist existing as well as new start-up companies in project, fixed assets and working capital financing. 1. Minimum Loan Size: RM50,000 2. Maximum Loan Size: Project Financing - RM1.5 million • Fixed Assets Financing - RM1 million • Working Capital Financing - RM1 million 3. Eligible Expenses: Project, fixed assets and working capital financing. (RM1.5 million) • Costs incurred for initial store renovation and upgrade of store display for retail trade. (RM1.5 million) • Working capital for companies with confirmed contract from GLCs, MNCs and the Government including its agencies. (RM500,000) 4. Repayment Period: Land and Building - up to 15 years including grace period of up to 2 years. • Machinery and Equipment - up to 6 years including grace period of up to 1 year. • IT Equipment - Up to 4 years including grace period of up to 1 year. • Term Working Capital - up to 3.5 years including grace period of up to 6 months. • Revolving Working Capital - Subject to annual review. 5. Interest Rate: 4 % per annum
Soft Loan For Factory Relocation (SLFR): The Soft Loan is to assist the SMEs to relocate their factories to designated industrial sites. 1. Minimum Loan Size: RM50,000 2. Maximum Loan Size: RM1.5 million 3. Eligible Expenses: • Purchase of ready-made factories • Purchase of factory lot and construction of factories including related infrastructure • Costs to purchase related machinery and equipment due to relocation • Costs incurred for initial store renovation and upgrade of store display for retail trade 4. Percentage of Financing: Up to 85% of the cost of eligible items 5. Repayment Period: Up to 15 years including grace period of up to 2 years. 6. Interest Rate: 4 % per annum