Malaysia is a country with a well-developed economy, and as such, there are plenty of opportunities for businesses to get funding through loans. However, getting a business loan in Malaysia can be tricky, as there are many different types of loans available, and each has its own set of eligibility requirements. In this ultimate guide, we will walk you through the process of getting a business loan in Malaysia from start to finish.
Steps To Plan Your Business Loan:
Here are the steps you should take in order to plan your business loan:
1) Sort Out Your All Legal Matters:
The first step to getting a business loan in Malaysia is to ensure that all of your legal matters are in order. This includes incorporating your business if you have not already done so. You will also need to have all of the required licenses and permits in place before you can apply for a loan.
2) Create a Detailed Business Plan:
The next step is to create a detailed business plan. This should include information on your business model, your target market, your marketing strategy, and your financial projections. The lender will use your business plan to assess your loan application, so it is important that it is well-crafted.
3) Choose a Lender / Financer:
Malaysia has a number of places where you can get a business loan, such as banks, credit unions, and online lenders. You should look into numerous lenders and evaluate their interest rates, fees, and terms for paying back the loan to choose the one that best fits the demands of your business. It’s also important to make sure that the lender you choose is registered with the right authorities in Malaysia and follows their rules.
4) Choose the Right Loan for Your Business:
There are many different types of loans available in Malaysia, so you must choose the right one for your business. The most common type of loan is a term loan, which can be used for a variety of purposes such as working capital, equipment purchases, or property development.
5) Gather the Required Documentation:
Once you have chosen the right loan for your business, you will need to gather the required documentation. This includes financial statements, tax returns, and bank statements. You will also need to provide a business plan and a detailed description of your collateral.
6) Submit Your Loan Application:
The final step is to submit your loan application to the lender. Once your application has been reviewed, the lender will provide you with a loan offer. If you accept the offer, you will be required to sign a loan agreement and make a down payment.
Top 5 Malaysian Government Funding Schemes:
1) Tabung Usahawan Siswazah (TUS):
The Tabung Usahawan Siswazah (TUS) is a financing scheme open to Malaysian citizens pursuing higher education. Under this scheme, students can apply for loans of up to RM5000K at 4% interest per annum to finance their studies.
2) Tekun Nasional:
The Tekun Nasional is a government agency that provides financing to small businesses in Malaysia. The agency offers a variety of financing products, including term loans, working capital loans, and micro loans. Tekun offers RM 10K to 50K loans for small businesses.
3) Rural Economy Funding Scheme (SPED):
The Rural Economy Funding Scheme aims to increase economic opportunities for rural people in Malaysia. It offers loans between RM20k and RM50K that are based on shariah principles, with no interest charged if it’s used within one year or paid back early at just 4%.
4) SME Emergency Fund (SMEEF):
The SMEEF is a financing facility that is open to small and medium enterprises (SMEs) in Malaysia that have been affected by the COVID-19 pandemic. Under this scheme, businesses can apply for loans of up to RM100K at 0% interest.
5) Soft Loan for SMEs (SLSME):
The Soft Loan for SMEs (SLSME) is a financing scheme that is open to Malaysian SMEs. Under this scheme, businesses can apply for loans of up to RM5 million at 4% interest per annum. The loan tenure is up to 10 years, and no collateral is required.
Conclusion
So, you’ve decided to take the plunge and start your own business. Congratulations! A loan can help get your business off the ground by providing you with the funds you need to cover startup costs. We hope this guide has helped explain how to get a business loan in Malaysia. Apply today and get started on your journey to success!
About Limra Assets
Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.
If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.
Disclaimer:
It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.