Relief and Adaptation Facility (RAFt)
A financing program introduced as part of Bank Negara Malaysia’s efforts to ease the financial burden on Micro, Small, and Medium Enterprises (MSMEs) impacted by floods and helps businesses better prepare and minimise flood risks.
Eligibility
- Adaptation Financing: For Microenterprises and SMEs that have been affected by floods or are in flood-prone areas.
- Relief Financing: Microenterprises and SMEs that are affected in districts declared flood-disaster areas by Agensi Pengurusan Bencana Negara (NADMA). with applications required within 12 months of the flood event.
Purpose of Financing
- Capital investments and relevant expenses to pre-emptively manage or reduce SMEs’ flood risk and losses (i.e. flood adaptation purposes)
- Professional flood assessments and consultation
- Relocation of business premises to safer, low-flood-risk areas
- Flood-related construction expenses for new or existing premises
- Maintenance or servicing of flood adaptation systems
- Flood insurance/takaful for business premises, assets, and business interruption
- Repairs or replacement of business assets damaged by natural disasters
- Working Capital Requirements (WCR)
Note: Financing should not be used to refinancing existing financing facilities.
Financing Amount
- Adaptation Financing: Up to RM1.0 million per SME business
- Relief Financing: Up to RM1.0 million per SME business
Note: Should both adaptation and relief financing are taken up, the combined limit is RM2 million per SME.
Financing Rate
|
Timing |
Financing Option |
Rate |
|
Post-major flood event (listed by NADMA) |
Relief Financing |
3.50% p.a. |
|
Relief Financing |
3.00% p.a. |
|
|
*Relief Financing + Outstanding/Existing Adaptation Financing |
||
|
Anytime |
Adaptation Financing |
Financing Tenure
- Adaptation Financing: Up to seven (7) years
- *Relief Financing: Up to seven (7) years, including:
- A built-in moratorium period of six (6) months on both principal and profit payments.
- Any additional moratorium period mutually agreed upon by the SME and PFI.
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):
|
| 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 0.50% 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. |
Product Disclosure Sheet:
- Click here for Product Disclosure Sheet – English Version
- Click here for Product Disclosure Sheet – Bahasa Malaysia Version
For enquiries email to: sme-assist@bankislam.com.my
