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Apply for a Guaranteed SME Business Bank Loan

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With the COVID-19 pandemic continuing to affect Malaysia's economy negatively, more small businesses than ever are searching for an SME business bank loan. Companies classified as SMEs are typically the enterprises most affected by even the smallest drop in the country's GDP.

But securing a loan from banks and other financial institutions can require putting up collateral to guarantee the loan. Most small business owners have already invested in their company to keep it afloat during the past year. And with no end in sight to the misery of the pandemic, many SME business owners simply can't afford to put any more of their own funds into the business without jeopardising the future well-being of themselves and their families.

Pandemic Effect in Malaysia on SMEs

It has been recently estimated that over 30,000 SMEs have gone out of business in Malaysia because of the pandemic. The country is currently under the Movement Control Order (MCO) to stem the coronavirus infections. While this order is necessary, it adds another level of difficulty to small businesses who are merely trying to survive. 

With the borders closed and shipping and transport slowing to a mere fraction of what it once was, SME’s are facing higher costs for materials that they simply can’t absorb. Many of them have already had to make costly adjustments to their operations, like adopting a digital marketing and sales platform, changing working hours to provide social distancing, and investing in larger workspaces with better ventilation. 

They have done all they can with their diminished financial resources. What they need now are SME business bank loans that are guaranteed by a third party willing to bet on their future. 

SJPP Provides Financial Solutions for SMEs

The country’s SMEs play a vital role in providing employment for many of Malaysia’s citizens and residents, particularly in the smaller towns and villages throughout the country where opportunities to make a living are often few and far between.

The Minister of Finance has established Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) to address this growing problem for SMEs. SJPP has been positioned as a guarantor of SME business bank loans. Now SME owners will not have to worry about putting up collateral to secure a loan from private banks and lending institutions that have aligned their services with SJPP.

There are six loan schemes to choose from that encompass all industries and business sectors in Malaysia. They include:

  • Working Capital Guarantee Scheme - Financing Limits of RM100,00 – RM10 Million
  • Working Capital Guarantee Scheme – Startup – Financing Limits of RM50,000 – RM500,00
  • Working Capital Guarantee Scheme – Bumiputra – Financing Limits of RM100,000 – RM3 Million
  • Working Capital Guarantee Scheme – Export – Financing Limits of RM100,00 – RM10 Million
  • Working Capital Guarantee Scheme – Women – Financing limits of 100,000 – RM1 Million
  • Automation & Digital Guarantee Scheme – Financing Limits of RM100,000 – RM10 Million

Together, these schemes offer immediate help for struggling SMEs. Contact SJPP to find out more about these SME business bank loan schemes and learn which is the best scheme for your industry and type of operation.

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