Credit Enhancer Scheme (ENHANCER)

Eligibility Criteria

• New businesses are eligible to apply
• Malaysian-controlled or Malaysian-owned businesses.
• Must fall within the definition of SMEs (for details, please click here).
• Borrower must have a good credit record.
• Franchise businesses can apply under this scheme.

Maximum Loan Limit

Loan of up to RM10.0 million.

Credit Facilities Covered

	Term Loan		Bills Purchased
	Overdraft		Bankers Acceptance
	Letter of Credit		Shipping/Performance/Bank Guarantee
	Trust Receipt		Hire Purchase
	Export Credit Refinancing (ECR)		Leasing

 

Lending Rate

The annual lending rate is up to 2% above the Base Lending Rate (BLR) of the lending institutions.
*Lending institutions are free to quote the lending rate if the guarantee cover is 50% or less.

Guarantee Coverage

The CGC guarantee coverage ranges from between 30% to 90% subject to the following:-

	Unsecured Portion – Up to 80% (a maximum cover of RM3.0 million)
	Secured Portion – Up to 90% (no capping imposed on secured portion)

 

Guarantee Fee

	Unsecured Portion : 0.75% to 4.00% per annum.
	Secured Portion : 0.50% to 3.20% per annum.

SMEs with higher risk profiles will be charged higher guarantee fees, whereas SMEs with lower risk profiles will be charged lower guarantee fees. The range observed is to match borrower’s credibility in terms of risk rating with the pricing of the guarantee.

i) Payment of Guarantee Fee

• New Letter of Guarantee (LG) – Payable upon request for LG by Financial Institution (FI).
• Anniversary LG – Payable on or before LG anniversary date.

ii) Refund of Guarantee Fee

• Refund of guarantee fee will be pro rated on monthly basis. The utilized period is calculated from the month of LG/Anniversary LG until the month of cancellation/amendment.
• The refund of guarantee fee on pro rated basis is applicable for LGs that are cancelled or amended by CGC commencing 2nd Jan 2013 onwards.

 

Source: Credit Guarantee Corporation Malaysia Berhad’s Website