Low Carbon Transition Facility

Open to SMEs in all sectors that are committed to transform their businesses toward low carbon and sustainable business operations.

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Eligibility

  • Open to SMEs in all sectors.
  • For Private Limited Company (Sdn. Bhd.), Sole-Proprietorship, Partnership that fall within SME definition.
  • Minimum of three (3) years in operation for Private Limited Company (Sdn. Bhd.)
  • Minimum of five (5) years in operation for Sole Proprietorships and Partnerships.
  • Registered with the Companies Commission of Malaysia (SSM), or respective authorities / district offices in Sabah and Sarawak
  • Malaysians residing in Malaysia that hold a minimum of 51% shareholding / ownership in the business.

Objective

To encourage and catalyse SMEs to transition to low carbon operations by adopting sustainability practices for business resilience.

Purpose of Financing

To finance Working Capital Requirement (WCR) or Capital Expenditure (CAPEX)* in order to initiate or facilitate the transition to low carbon and sustainable business operations


Note:
1. *Excludes land purchases.
2. This financing cannot be used to reimburse CAPEX / WCR.
3. Refinancing is not permitted under this facility

Financing Amount

Sdn. Bhd.:

  • Min: RM100,000
  • Max: RM10 million

Sole-Proprietorship / Partnership:

  • Min: RM100,000
  • Max: RM2.5 million

Financing Rate

Up to 5.0% p.a., inclusive of guarantee fee by SJPP or CGC

Financing Tenure

Business Financing-i (BF-i) : Up to ten (10) years

Collateral / Security

Credit Guarantee Corporation (CGC) – BizJamin-i LCTF (whichever lower):

  • Between 30% to 80% guarantee OR
  • RM5.0 million guarantee

Syarikat Jaminan Pembiayaan Perniagaan (SJPP) – depends on scheme:

  • Up to 80% guarantee (WCGS, WCGS – Bumi, GGSM 3, any other schemes released in the future)

Sdn. Bhd.:

  • Joint and Several Guarantee (JSG) by the following individuals:
    • Directors of the company
    • Shareholders holding more than thirty percent (30%) of the share capital.
    • Key man / person regardless of the shareholding and directorship.
  • Corporate Guarantor holding more than fifty percent (50%) of the share capital of the customer.

Partnership:

  • Letter of indemnity or undertaking, whichever applicable.

Fees & Charges

No.

Fee Type

Charges
1 Stamp Duty Actual Cost – As per Stamp Duty Act 1949 (Revised 1989):

  1. Principal Agreement – Ad Valorem of 0.5% of financing amount
  2. Secondary / Supplementary Agreement – Nominal of RM10 of each document
2 Legal Fees Actual Cost
3 Processing Fee Waived
4 Tawarruq Agency Fee RM50 (RM25 of each ABPA and ABSA)



Note: Tawarruq Agency fee costs RM50.00 for every Tawarruq transaction.
5 Late Payment Charges Late payment charges (LPC) are as per BNM’s latest Guidelines on Late Payment Charges for Islamic Banking Institutions as well as Bank Islam Ta’widh clause.
6 Guarantee Fee The Guarantee Fee is up to 0.75% per annum of the coverage amount, depending on the scheme offered by SJPP and subject to 8% Sales and Service Tax (SST). The Bank will finance only the first year of the SJPP Guarantee Fee. For subsequent years, the Guarantee Fee will be debited from the customer’s account with Bank Islam
7 Cancellation Fee Based on actual cost (if any) for the preparation and registration of security documents that has been incurred by the Bank in connection with the facility including all expenses incurred during the claim process.

Availability

Until full utilisation

Product Disclosure Sheet:
  • Click here to view Product Disclosure Sheet – English Version
  • Click here to view Product Disclosure Sheet – Bahasa Malaysia Version

For enquiries email to: sme-assist@bankislam.com.my

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