CGC revises guarantee scheme to help SMEs

  • Business
  • Tuesday, 03 Jun 2003

CREDIT Guarantee Corp Malaysia Bhd (CGC) has revised its Islamic Banking Guarantee Scheme (IBGS) to allow small-and medium-scale enterprises (SMEs) to obtain maximum financing of up to RM10mil. 

SMEs eligible are those with an annual turnover not exceeding RM25mil or with not more than 150 full-time workers. 

CGC managing director and chief executive Datuk Wan Azhar Wan Ahmad said the revision followed the enhancement to its New Principal Guarantee Scheme (NPGS), which caters for conventional business loans. The IBGS, introduced in 1997, is aimed at assisting SMEs with viable projects but which lack the collateral to obtain the required financing from participating financial institutions. 

A CGC statement said the revised scheme provides a maximum guarantee cover of RM2.5mil for the unsecured portion of the financing, applicable to all sectors. No cap is imposed on the second portion. 

Previously, the maximum of RM2.5mil was applicable to the manufacturing sector only.  

The scheme also provides for a guarantee cover of up to 80% for the unsecured portion and 90% for the secured portion. The guarantee fee chargeable is only 1% for the secured portion and 1.25% for the unsecured portion, and is to be paid annually in advance.  

It is available at all commercial banks and finance companies that have Islamic banking products. 

CGC said as of May 24, the IBGS had benefited 247 borrowers involving loans valued at RM153.5mil. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Across the site