3 Benefits / Financial Aids Given by Government to New Business Starters or Existing Business Owners

3 Benefits / Financial Aids Given by Government to New Business Starters or Existing Business Owners

1. Tabung Usahawan Sizwazah (TUS)

This scheme is initiated by SME Malaysia with the collaboration of INSKEN Malaysia (Institut Keusahawanan Negara) to provide financial aid to all Malaysian university/college graduates

Loan Amount:

I.  RM20,000 to RM500,000.

Eligibility:  

I. Malaysians aged not more than 40 years old.

II. At least diploma holders under courses recognised by MQA.

III. Guarantor is required for loan exceeding RM100,000.

Loan Repayment:

I. 4.0% interest.

II. Maximum 10 years of repayment period or up 20 years (for business premises only) with 40 months of grace period can be considered.

Sources: http://www.smecorp.gov.my/index.php/en/financing-for-startup, http://www.sarawakdga.org.my/index.php/2012/09/sme-bank-tabung-usahawan-siswazah-tus/

2. Business Start-up Fund (BSF)

This loan scheme is established by Malaysian Technology Development Company (MDTC) under Ministry of Financial (MoF) to fund new technology-based company. It is aimed to lift financial blockages in starting up a technology-based company.

Loan Amount:

I. Up to RM5 million.

Eligibility:  

I. Malaysian owned or at least 70% ownership technology company that incorporated under Company Act 2016.

II. Only for Technology-based companies.

Loan Repayment:

I. 3.5% interest.

II. 6.5 years repayment period with 18 months grace period. Actual repayment period is 5 years only.

Sources: https://www.mtdc.com.my/business-funding/bsf/

3. Soft Loan Scheme for Small & Medium Enterprises (SLSME)

This loan scheme is initiated by Malaysian Industrial Development Finance Berhad (MIDF) under Ministry of International Trade & Industry (MITI) to provide financial aids in fixed assets and working capital to new start-up companies or existing companies.

Loan Amount:

I. RM50,000 to RM5 million.

Eligibility:  

I. Malaysian owned or at least has 60% of ownership SMEs that incorporated under Companies Act 1965 or Registration of Business Ordinance 1956.

Loan Repayment:

I. 4.0% interest.

II. Various repayment period for loan in fixed assets and working capital.

Sources:

http://www.midf.com.my/index.php/en/what-we-do-en/sme-financing