SME fund for Chinese businesses began accepting applications from June 5, with loan amounts ranging between RM50,000 and RM250,000, reports Adrian Chan.
Small and medium enterprises (SMEs) will have to act fast if they want a chunk of the RM50mil fund that has been set aside exclusively for Chinese businesses.
Officially launched on June 5 by Prime Minister Datuk Seri Najib Tun Razak and witnessed by Minister of Transport Liow Tiong Lai and Minister in the Prime Minister’s Department, Datuk Dr Wee Ka Siong, the Chinese SME Entrepreneur Fund is now accepting applications.
The Prime Minister appointed Kojadi, MCA’s education and investment arm to manage the fund, citing their track-record of keeping a low non-performing loan (NPL) rate of only 1.7%.
“I am confident that Kojadi can be successful (in managing the RM50mil funds). I hope your KPI can be maintained at 1.7%,” said Najib.
Kojadi chairman Datuk Ng Peng Hay said loans would be given to eligible applicants on a first-come-first-served basis.
Applicants, aged between 21 and 60, who need funds for their business would be considered for loans between RM50,000 and RM250,000. They would be give a maximum of five years to repay the loan at a flat interest rate of 4% per annum.
Ng said applications would be vetted by a panel of judges from Kojadi comprising members from leading financial institutions.
“Currently we have no restrictions on the applicant’s industry. If your business makes money, and you have a good credit rating, you are eligible to apply,” he said during the launch of the loan.
Borrowers are required to pledge a collateral of at least 25% of their loan value. However, Ng assured that if this was not possible, the panel would still consider the applications if they could provide guarantors.
He said Kojadi would take seven working days to assess an applicant’s credit rating before sending the application for the approval of the panel.
“Approval will likely to take one month,” he said.
Applicants should take note that they are required to join Kojadi as members before they become eligible for the loan.
Those wishing to submit their applications must enclose RM100 in processing fee, RM110 in Kojadi membership fee, and RM6.60 for goods and services tax. All applications are to be posted to: Koperasi Jayadiri Malaysia Bhd at 11th Floor, Wisma MCA, 163 Jalan Ampang, 50450 Kuala Lumpur.
For more information, kindly contact Anthony Wong or Kelly Wong at 03-2161 6499.
Checklist for loan application
- Completed Kojadi SME Loan Scheme application form and Kojadi membership application form
- Processing fees of RM100 and membership entrance fee and initial shares of RM110 (excluding GST)
- Submit certified copies of identification card from the applicant
- Submit one (1) passport-sized photograph of the applicant
- Submit a recent copy of the applicant’s home & office telephone, electricity & water bills
- Form 24, 44, 49 (or latest Annual Returns) & Memorandum and Article of Associations for private limited companies or Certificate of Business Registration (for proprietorship / partnership
- Audited account for the last 3 years
- Management account for the last 3 years
- Bank statement for last 6 months
- Certified true copies of government letter of awards / contract / dealership agreements / purchase orders / other form of security
- Borang J of applicant / proprietor / partner
- Cash flow projection (if applicable)
- Brochure on applicant's products / services (if available)