SME Bank or Bank Perusahaan Kecil dan Sederhana exists since a couple of years ago (2005 in exact) and the objective of the establishment is to help developing Small Medium Enterprises (SMEs) in Malaysia. SME Bank also acts as a one-stop financial solution provider for aspiring businessmen.
If you thought of quitting your job and secure financial loans for your start up business then SME Bank’s help can be handy.
The Definition of an SME
Before you approach the SME Bank, you must understand the definition of Small Medium Enterprise (SME) itself. A business is only eligible for financial assistance from the SME Bank if it falls within the SME category. A few factors that govern the classification of business as an SME are number of employees, industry and total sales/revenue of the company. An SME will be also further categorized as Micro, Small or Medium SME.
Before this, no standard definition of SME was established and as such, different agencies have been defining SMEs according to their own criteria. In June 2005, The National SME Development Council announced the official and common definition of SMEs. It was documented into a 14-page PDF file. You can download the PDF file here to study the definition and criteria. Otherwise, if you want a shorter version, click the summarized definition of SME from SME Info.
Various Financial Helps Available
SME Bank’s financial assistance or loans are eligible for start-up businesses as well as those wanting to expand their existing operation. But it does not stop there as the bank also offers financial aids for franchise businesses too. This is a program coordinated by PNS (Permodalan Nasional Berhad) with the help of SME Bank as a partner.
The franchise financial program is not limited to franchisees (e.g. if you want to open up a KFC or a 7-Eleven) but also applicable if you plan to bring an oversea franchise business into this country (hence you become the master franchisee) or if you’re running a successful SME and plan to franchise your business (you become the franchisor). More info on SME Franchise is available here.
SME Bank works closely with other government bodies and agencies such as MARA (Majlis Amanah Rakyat), MEDEC (Malaysia Entrepreneur Development Center), MECD (Ministry of Entrepreneur and Co-Operative Development) and others in a synergized effort to develop and organize development programs for entrepreneurs.
Also, under a program called SME Professional, the SME Bank extends financial aid for those graduates or professionals (e.g. doctors, lawyers, chartered accountant and so on) who wish to start their own practice. The SME Professional is a partnership program between the SME Bank, CIMB Bank, MARA and PUNB.
How Much Money You Can Get?
The amount of the financial loan eligible depends on certain criteria, and will be mainly defined by your SME category e.g. Micro, Small or Medium. Roughly, a Micro SME can get up to RM500,000 loan (this is already a lot, folks!), Small SME RM5 million and Medium SME RM 10 million. However, this is just a rough guideline and may change depending on circumstances.
What do I need to do before getting the financial loan from SME Bank?
A business plan. That’s right. The SME Bank officers usually refer a business plan as an RP, or Rancangan Perniagaan. This will not be covered today but in one of the future postings since this will be another lengthy write-up. If you are new to this blog, you can subscribe to our future postings through here.
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Dear SME,
SME bank is something that most small businessmen can turn for help ideally. Therefore SME bank must be the rescuer of business man who has business and hope to improve their business. Often applying the available commercial bank is difficult as commercial banks are interested to share the profit of business men rather than helping the business men. As such the commercial banks only extended loan to those company with large profit not because they are looking guarantee for their loans, but because they want to tap the profit too. Having said that, SME if really like to help small business man, the criteria of approving loan to business man should be different from the commercial bank. Otherwise, there is no different among all banks except the amount of profit or interest they get is the different. Take for instance, whatever required by commercial bank to approve the loan, that is what SME wants. Therefore if ones do not get loan from commercial bank, it is not worth for him to try on the SME unless he has a strong backing from some influential figure. I suggest the SME must look into a more effective way of disimbursing loan to its customers by reducing paper work. Especially if the applicant gives a liquidatable asset as a colateral.
Thank you.
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Saya yang bernama diatas ingin bertanya tentang fixed deposit..Gikalau saya mempunyai wang sebanyak RM 50,000.00 depositkan dalam bank sebagai Fixed deposit and gadai selama 5 tahun..dan mengambil laon daripada pihak bank sebanyak RM 50,000.00 berapakan interest yang saya kena bayar kepada pihak bank dan berapakan pihak bank akan bayar interest kepada saya..tujuan saya adalah untuk menperluaskan sector perternakan saya..,Saya juga ingin tahu apakah procedure dan document yang perlu saya sediakan..saya menpunyai lembu tenusu sebanyak 50 ekor,saya juga ingin pihak bank menberi tunjuk ajar kepda saya bagaimana nak mengembangkan perniagaan perternakan saya….set ternakan yang saya mempunyai adalah sebanyak Rm 125,000.00…sila tunjuk ajar dan memberi peluang kepada saya untuk maju kehadapan…
sekian terima kasih
admc
Saya seorang wanita bujang, ingin mulakan industri packing di rumah. Saya ada sebuah rumah town house, ingin dapat kan bantuan kerajaan untuk mula kan industri packing rumah, tolong beritahu saya bagaimana memohon.
Terima kasih.
I currently just start up my business but i am still lack of capital how can i apply.
I want start up my business but i have black list from bank how i can apply the loan from goverment! TQ !!! Can U help me ?
saya ingin menjalankan satu projek ayam kampung.ada kertas kerja ttp tdk pernah menghadiri sebarang kursus.adakah saya boleh mendapat pinjaman dari pihak tuan?
bagaimana caranya?terima kasih.
Hi, My name is David and i’m planning to open a macdonalds restaurant. Can u please assist me in getting a loan from SME bank
saya mempunyai business enterprise iaitu pembekalan ais batu ke restoran-restoran dan mempunyai 2 buah lori serta 4 orang pekerja.masalahnya saya menghadapi kekangan kewangan disebabkan faktor jualan yang merudung dan faktor saingan yang tidak sihat….utk pengetahuan pihak tuan,syarikat saya adalah 100% milik bumiputera…bagaimana SDRC dapat membantu saya?
Saya yang bernama diatas ingin bertanya tentang loan from SME. saya buat industri packing hair shampoo personal care and house hold products saya ada terima order banyak tapi tak dapat nak buat barang sebap tak cukup modal. cuma saya nak RM 60,000.00 tolong beritahu saya bagaimana boleh memohon.
Terima kasih.
Hi, I’m Neera. I’m a student whose currently studying bachelor of Accounting at MMU Cyberjaya. I owned a business with my other 3 friends, it is an online boutique ( http://petite-lass.blogspot.com/ ). We’re going to register our company very soon. Currently our products are from overseas and within Malaysia. We also have planned to expand our business, like to have our own clothe’s tag, and to design our own clothes/bags/shoes, anything that involves with the fashion industry. The problem here is, we have a very small capital and thinking to apply for business loan but we don’t have a payslip/fixed income since we’re still a student. Currently we’re using our own money and never withdrawn any money from the sales we made because we wanted to increase our capitals.
Another thing is, I’m thinking to open up my own store too. But at the same time I’ll give my hundred percents commitment to Petite Lass Boutique. I have a detail plan about my store. But money is still the major problem.
The capital we need in Petite Lass may be only 20-30k, but for my own company only 10k is needed to start my business. If my business grow successfully only then I’ll think to borrow more based on my concrete financial statement.
If I come out with my business plan (and we from Petite Lass too), is SME going to consider to give the loan?
Hope to hear from you soon. Thank You.
Neera & Shankar, if you have a serious real business with proper business premise and sales, getting SME loan from bank is possible, but your credit rating have to be convincing. This is the part that most people fail in bank screening. danny _ sac at hotmail