by Rajen KumarIndia's Manufacturing Muddle
What holds Indias manufacturing sector at the back foot? Why the sector has failed to emerge from the shadow of a strong service sector which has recorded a creditable growth in the...
Special ReportsMar 2014
When you have just decided to go ahead and chase your dream of higher studies, the one you had sidelined for quite some time now, you realize the road ahead is not so...
Soft Loan Scheme for SMEs (SLSME)
Financial assistance in the form of loans is still provided under the Soft Loan Scheme for SMEs (SLSME). This scheme is implemented by Malaysian Industrial Finance Berhad (MIDF) to finance the purchase of fixed assets such as machinery and plant, acquisition of ICT hardware and software as well as working capital.
Commercial financial institutions are the largest source of business financing in this country. In addition, financial facilities for SMEs are also provided by Government agencies namely Economic Fund for Small Businesses (TEKUN), Malaysia Innovation Agency (AIM), Majlis Amanah Rakyat (MARA), National Entrepreneur Corporation Limited (PUNB) and National Corporation Limited (PNS), as well as Development Financial Institution such as the SME Bank, Bank Rakyat, Agro Bank, MIDF and Bank
Simpanan Nasional (BSN). Companies can access the following website: www.smeinfo.com.my for more information.
Companies can participate for the SLSME in two ways by filling the form online at the official website of the SME Corp. Malaysia. www.smecorp.gov.my; or the Company can visit SME Corp Headquarters or in a nearby state offices for enquiries and more information.
Shari'ah-Compliant SME Financing Scheme (SSFS)
SSFS is a financial assistance for eligible Malaysian SMEs whereby the Government of Malaysia has agreed to pay 2% (percentage point) of the profit rate charged on the financing facilities offered by participating Islamic banks.
SMEs undertaking Shariah-compliant business activities in all sectors excluding financial product and services for which the activities are regulated under, among others, the various banking, insurance, takaful and unit trust laws and regulations. SME shall also fulfill the SME definition, with at least 60% of the equity is owned by Malaysian. However, those SMEs having any shareholding by Government-linked corporations (GLC), Public listed companies (PLC) and Multinational Corporations (MNC) are not eligible except for government development agencies such as National Corporation Limited (PNS), National Entrepreneur Corporation Limited (PUNB), Majlis Amanah Rakyat (MARA), Cradle and state development agencies.
The maximum financing amount eligible under the scheme is RM5 million per SME, based on the approved amount aggregated based on all financing provided under this scheme from all participating Islamic banks; and common shareholders / directors. SMEs may obtain financing above RM5 million. However only the first RM5 million will be eligible for the 2% profit rebate while the balance of the financing amount will be at the normal rate as offered by the Islamic bank.
SMEs need to submit their financing application to any of the 6 participating Islamic banks. In addition to the main eligible criteria, the financing application is also subjected the banks' credit assessment, guidelines and respective limit of the Islamic banks. For financing facilities which had been approved in 2012 onwards, customers need to refer to the participating Islamic banks for further information on how they can participate in the SSFS and enjoy the profit rebate.
- Winner of appreciation award for promoting SMEs in India.
- 1st ever Indian magazine to penetrate tier II, III cities & the rural belt.
- Industry Partnerships include CII, FICCI, ASSOCHAM, PHDCC, AIMA, ITPO, SME Network, Federation of Indian Micro Small Enterprises (FISME)
- Official Magazine Partners for several national & international MSME events.
The Last Word
January every year used to be the Great Film Month in Delhi. International Film Festival of India, IFFI used to take place a great get together of film buffs. Youngsters with a taste for the...
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