Flexi Guarantee Scheme (FGS)

Flexi Guarantee Scheme (FGS)

1 Effective Date
  • 19th April 2006
2 Objective of Scheme
  • To assist entrepreneurs who have viable projects but lack the collateral to obtain the required loan amount from financial institutions
3 Credit Facilities for Guarantee
  • Base on the credit facilities eligible under the:-
    1. Fund for Small and Medium Industries-2 (FSMI2)
    2. New Entrepreneur Fund 2(NEF2)
       
4 Eligible Participants
  • Based on the individual eligibility criteria of the FSMI2 and NEF2
     
  • Must be Malaysian owned or Malaysian controlled (majority of shareholding/interest is Malaysian). Except for the RFSMI scheme, borrower must have good track record and is not listed under Biro Maklumat Cek of the Central Bank
5 Loan Limit
Scheme Amount
FSMI2 RM5.0 Million
NEF2 RM5.0 Million
6 Interest Rate
Scheme Interest Rate
FSMI2 4% to 6%
NEF2 4% to 6%
  • There is no capping of guarantee cover for the secured portion of the loan
7 Guarantee Cover
  • Ranging from 30% to 80%
  • Covers credit facilities ranging RM0.5 million up to RM2.5 million for unsecured portion and no capping for the secured portion of the loan
8 Guarantee Fee
  • The annual guarantee fee, payable in advance annually, will be borne by the lending institution and is calculated based on th guarantee cover issued
     
  • Unsecured Portion - Between 0.8% to 2.15% p.a
     
  • Secured Portion - Between 0.5% to 1.85% p.a
9 Guarantee Period
  • Follows the tunure of the loan / tunure of funding i.e.
    FSMI2 - up to 3 years
    NEF2 - up to 8 years
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