Features
Objective
Bank Negara Malaysia (BNM) has established the BNM Fund for SMEs as one of the Government’s continuous efforts to ensure SMEs have access to financing at reasonable cost.
Financing can be used for:
- Working capital
- Capital expenditures (e.g. purchase of machinery and equipment or renovation cost for owner-occupied business premises)
- Both – Working capital and expansion of productive capacity
Financing cannot be use for:
- Refinancing of existing credit facilities
- Purchase of shares
- Purchase of land / Real Estate investment
- Properties development
- Investment holding company
- Activities where stock in trade is money (including credit, leasing, factoring and insurance businesses)
- Non-economic or non-healthy activities
- Gambling, alcohol, tobacco or other similar activities / products
- Sole Prop, Partnership, Limited Liability Partnership, Private Limited Company (Sdn Bhd) that is classified as SME based on the definition of SME Corp Malaysia;
- Malaysian owned companies i.e. with at least 51% shareholding / ownership by Malaysian that is residing in Malaysia and is registered with either:
i) Companies Commission of Malaysia (SSM) either under the Registrar of Business Act (1956) or Companies Registration Act 1965 and / or the Companies Registration Act 2016 or Limited Liability Partnership Act 2012; or
ii) Respective authorities or district offices in Sabah and Sarawak; or
iii) Respective statutory bodies for professional services providers - Shareholding by Public Listed Companies and Government Link Companies (if any) in the SMEs should not exceed 20%
- Does not exceed the maximum aggregate amount of financing of RM 5 Million per SME, which includes those to related companies of the SMEs with common shareholders(s) unless stated otherwise by BNM.
* Meets the SME definition as issued by SME Corporation Malaysia that is endorsed by the National Entrepreneur and SME Development Council (NSDC). It however excludes entities that are public-listed on the main board and subsidiaries of publicly-listed companies on the main board, Multinational Corporations (MNCs), Government-Linked Companies (GLCs), Syarikat Menteri Kewangan Diperbadankan (MKDs) and state-owned enterprises. For more details on SME definition, please visit www.smecorp.gov.my. All application are subject to Bank’s credit evaluations, BNM approval and any other requirements set by BNM
- Maximum financing amount of up to RM5 Million per customer / SME. This would include financing:
(i) approved under any of BNM’s Funds (exclusive of the Special Relief Facility 2015 and any special assistance established by BNM to assist SMEs that are affected by disaster); and
(ii) to any related companies of the SMEs with common shareholder(s).
- Financing rate of 4% to 8% per annum (subject to the risk profile rating / pricing mechanism set by BNM)
- Maximum tenure of up 5 years from the date of the first drawdown
Q: What are BNM Schemes?
A: BNM Schemes are financing schemes introduced by the Government via Bank Negara Malaysia (BNM) for SMEs to have access to financing at a reasonable cost.
Q: What are the available BNM Schemes offered by Hong Leong Bank?
A: The following are the available BNM schemes offered by our Bank: :
i) BNM All Economic Sector Facility (AES)
ii) BNM Agrofood Facility (AF)
iii) BNM Automation and Digitalisation Facility (ADF)
iv) BNM Targeted Relief and Recovery Facility (TRRF)
v) BNM High Tech Facility (HTF)
vi) PENJANA Tourism Financing (PTF)
Q: What are the facilities offered under the BNM Schemes?
A: Facilities offered depends on the BNM Scheme e.g. Term Loan / Overdraft / Trade (such as Trust Receipts, Bankers Acceptance & Invoice Financing)
Q: Is there any guarantee coverage for this financing?
A: Guarantee coverage may be offered by either CGC ot SJPP depending on the BNM Scheme.
Q: What is the financing tenure under the BNM Schemes?
A: Generally the financing tenure is 5 years, unless specified otherwise under respective schemes
