Malaysia Industrial Development Finance (MIDF) Soft Loan Scheme

Malaysian Industrial Development Finance Berhad (MIDF) is an agency established in 1960 under the Ministry of International Trade and Industry Malaysia (MITI).

Two soft loan schemes of MIDF are now re-open for application for companies and enterprises operating in Malaysia.

MIDF provides a range of conventional as well as Islamic financing facilities such as term loans, industrial hire purchases, revolving credit and factoring for companies and enterprises that are well-established with a track record.

Advantage of MIDF Soft Loan Schemes – Low Interest Rates!

The 2 (two) Soft Loan Schemes have been specifically designed to meet the financing requirements of companies and enterprises:–

1. The Soft Loan Scheme For Automation and Modernisation (SLSAM) – To assist in the modernisation and automation of manufacturing processes and the upgrading of production capability and capacity so as to minimise dependence on labour-intensive activities and foreign labour, and to diversify into higher value-added activities as well as assists in the rationalisation and streamlining of operations through mergers and acquisitions.

2. The Soft Loan Scheme For Small And Medium Enterprises (SLSME) – To assist SMEs in financing acquisitions of fixed assets i.e lands, factory buildings, shop-lots, machinery/equipment and working capital requirements. SLSME is specifically designed to meet the financing requirements of SMEs in establishing start-up businesses or in expanding / upgrading businesses and also in enhancing competitiveness to face challenges and to capitalise on opportunities.

Financing granted under these Soft Loan Schemes are charged competitive interest rates of 4% per annum for SMEs whilst 5% per annum for Non-SMEs.

Application

All applications shall be submitted to MIDF for approval. For further enquiries and applications, please contact one of the followings :

[ Email: inquiry-feedback@midf.com.my

[ MIDF Sales Department office on Level 15, Menara MIDF, 82, Jalan Raja Chulan, 50200 Kuala Lumpur (Tel : 03 -21738888)

[ MIDF Regional Office nearest to you - Northern Region (Tel : 04-2298434), Southern Region (Tel : 07-2232727), Sabah Office (Tel : 088-211633)

SLSAM

SLSME

Eligibility

Companies incorporated under the Companies Act 1965 with:-

· in operation for at least 2 years.

SMEs incorporated under the Companies Act 1965 with:-

· with shareholdings not exceeding 20% being held by public listed company (if any);

· at least 60% equity held by Malaysians;

· possess a valid business licence.

Financing Amount

Minimum: RM100,000.

Maximum: RM5 million per application.

Maximum: RM3 million per application.

Eligible Items

Automation*

· purchase of new or reconditioned automation related machinery and equipment;

· costs related to the installation, commissioning and related training as well as maintenance of the machinery and equipment for investment in automation; and,

· purchase of software and computer peripherals related to the development of the automation system.

*The age of reconditioned machinery and equipment must not be more than 5 years. The above activities must result in a reduced number of foreign workers employed.

· Fixed assets and working capital financing;

· Costs incurred for initial store renovation and upgrade of store display for retail trade;

· Working capital for companies awarded contracts by GLCs, MNCs and the Government including its agencies.

Percentage Financing

· Up to 85% for new machinery and equipment.

· Up to 60% for reconditioned machinery and equipment.

Fixed Assets

· Up to 90% of the cost of new assets.

· Up to 65% for used/ reconditioned machine/ equipment which shall not be more than 5 years old.

Working Capital

· Up to 80% for Sales Revolving Credit

· Up to 100% for Purchase Revolving Credit

Repayment

· Up to 7 years including grace period of up to 1 year.

· Land and Building – up to 15 years including grace period of up to 2 years

· Machinery and Equipment – up to 6 years including grace period of up to 1 year

· IT Equipment – up to 4 years including grace period of up to 1 year

· Sales and Purchase Revolving Credit – up to 100 days for each drawdown including an option to rollover for a period not excluding 60 days for eligible borrowers.

Interest Rate

4% per annum on yearly rest (for SMEs).

· 5% per annum on yearly rest (for Non-SMEs).