SME Term Deposit Tawarruq Extra Financing-i (SME TDT XTRA FIN)

A financing program for SME designed to finance Working Capital Requirements (WCR), secured against Bank Islam Term Deposit Tawarruq (TDT)

 

Eligibility

  • For Private Limited Company (Sdn Bhd), Sole-Proprietorship, Partnership, and Professional Service Providers that fall within SME definition.
  • Business in operation at least three (3) years and profitable for the past two (2) years.
  • Open to customers from all sectors EXCEPT construction, investment holdings, non-operation company, and property developers.
  • Registered with the Companies Commission of Malaysia (SSM), or authorities/district offices in Sabah and Sarawak, or respective statutory bodies for professional service providers.
  • Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.
  • Malaysians residing in Malaysia that hold a minimum of 51% shareholding / ownership in the SMEs.
 

Purpose of Financing

  • Working Capital Requirement (WCR)
 

Financing Amount

Sdn. Bhd.:
  • Min: RM100,000
  • Max: RM5.0 million
Sole-Proprietorship / Partnership / Professional Service Providers*:
  • Min: RM100,000
  • Max: RM1.0 million

*Eligible for Option A only.

 

Margin of Finance

Option A:
  • 100% financing from Term Deposit amount (1:1)
Option B:
  • 150% financing from Term Deposit amount (150% MOF)
  • 120% financing from Term Deposit amount (120% MOF)
 

Financing Tenure

 

Security / Collateral

1st/*3rd Party Term Deposit Tawarruq on lien to Bank Islam will be taken as collateral.

*The registered individual owner of the Term Deposit Tawarruq must be the business owner, partner, or director

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 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 (PDS)

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