May 6, 2024

DAGS Start Up

Direct Access Guarantee Scheme Start Up (DAGS Start Up)

Eligible Criteria

  • Must fall within the definition of SMEs (for details, please click here).
  • Malaysian owned and controlled private limited companies registered under the Companies Act 1965, Sole Proprietorship or Partnership.
  • Applicable for business in operations with one (1) year or less only.

Submission Of Loan Guarantee Applications

All loan guarantee applications are to be submitted directly to CGC using a Standard application form accompanied by the necessary documents as per normal loan processing requirement.

Loan Amount And Guarantee Coverage

Loan amount ranging between RM50,000.00 to RM2.0 million.

Guarantee cover is up to 100% and shall be valid up to the maturity date of the loan with a maximum tenure of five (5) years.

Credit Facilities Covered

Overdraft and Term Loan only.

Cost Of Borrowing

The annual lending rate is up to the Base Lending Rate (BLR) of the lending institutions.

Guarantee Fee

  • Unsecured: 0.75% to 5.75% per annum
  • Secured: 0.50% to 3.60% 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.

Processing Fee

RM300.00 (for every successful application)

Annual Fee

RM150.00

Participating Institutions

Maybank, RHB Bank, AmBank, CIMB Bank, Affin Bank, OCBC Bank and all lending institutions which are assigned by the Corporation from time to time.

 

Source: Credit Guarantee Corporation Malaysia Berhad’s Website