In today’s world, it has become a good option to apply for a business loan in Malaysia. Malaysia has a good economy. You will find it easy to set up your business in Malaysia. The process is straightforward. If you have a good knowledge of the country, then you can do business easily. Malaysia encourages entrepreneurship. If you want to start your business in Malaysia, then you must prepare your financial statements. It is hard for the initial investment. That is when the business loan in Malaysia comes. In this article, you can know how to apply loan for business in Malaysia.
Planning Your Business in Malaysia
Here we will be talking the general things you need to get your business running. For registering your business, you have to follow some steps. Your business nature will vary but the process is somewhat same. The steps are provided below:
After planning comes the registration of your business. If you want to register SSM in Malaysia then this article will show you the steps and provide you with the guidelines. You can have a lot of opportunities in Sarawak. Registering your business in Malaysia inside Sarawak can get you a lot of revenue. Sarawak business registration will guide you in your business registration.
Getting Your Legal Documents Ready For Business Loan
Business loan in Malaysia or Malaysia bank loan will need legal documents. You must have all the documents of your business. The kind of business will also determine the documents you need. Whether you have a corporation, a sole proprietorship, a nonprofit, or a partnership venture, your documents will vary.
As you will be doing business in a foreign country you should know the country more. Do market research. Find out what licenses or permits you need for your business. Get the knowledge of all the rules in the country.
Make your Best Business Plan
Loan for business is a facility you can get if you can prove that your business is sustainable. When you are planning to do business in Malaysia you must know exactly what you will do. Your business plan is important. As a new entrepreneur you must know the goals. This will motivate you in the future.
You must have a strategic plan. You must note the nature of your business. Business loan in Malaysia can help you in your new business. Always plan for the future.
Loan for Business in Malaysia
After you have prepared your business plan and got all your documents and licenses, you must know the source of your fund. Do you want to apply for business loan in Malaysia? You must know the places where you can get that. There are organizations that provide these facilities. If you are an entrepreneur, then you can have help from the government. Make sure to check the information from the government. There are a lot of incentives offered by the government to provide help to the new entrepreneurs.
The Malaysian government has a lot of financial schemes in place. These help entrepreneurs and support them in the growth of their new businesses. In this article, we will go through all the schemes in Malaysia that will help you to get a business loan in Malaysia.
Government Business Loan Malaysia Scheme
If you want to get a loan for business, there are some government schemes that will help. Such examples are provided below:
- TEKUN Financing
- Tabung Pembangunan Pengangkutan Awam (TPPA)
- Soft Loan Schemes for Service Sector (SLSSS)
- Rural Economy Funding Scheme (SPED)
- Tabung Usahawan Siswazah (TUS)
- Tabung Pembangunan Usahaniaga Peladang (TPUP)
- SME Emergency Fund (SMEEF)
- Services, Manufacturing, and Engineering Scheme (SME Scheme)
- Soft Loan for SMEs (SLSME)
- Business Startup Fund
- Skim Kredit Penpeluaran Makanan
- Young Entrepreneur Fund
Detailed information is provided below.
This scheme is run by TEKUN Nasional (TEKN). Bumiputeras are eligible only. TEKUN financing scheme has two main categories. They are the Small Loan Scheme (SPK), and the Medium Loan Scheme (SPS). SPK is designed for small business. If you apply SPK then you are entitled to a loan for business of between RM10000 – RM50000. If your business is of large scale, then SPS is best for you. In SPS you are entitled to a loan for business of between RM50000 – RM100000.
Tabung Pembangunan Pengangkutan Awam (TPPA)
SME Bank Malaysia implements the Tambung Pembangunan Pengang Awam scheme. All the public transportation industry is entitled to this scheme. Individuals can also apply. For this business loan in Malaysia, you are entitled to get RM30000 to RM5 million.
Soft Loan Schemes for Service Sector (SLSSS)
If you have a business or want to start a business in the service sector in Malaysia, then this loan is for you. Implementation of this scheme by the Malaysian Industrial Development Finance Berhad (MIDF). Under this scheme, you are entitled to get a business loan in Malaysia of up to RM5 million at a rate of 5%
Rural Economy Funding Scheme (SPED)
Implementation of Rural Economy Funding Scheme to get more people to start business from the rural part of the country. Business loan in Malaysia for this scheme is between RM20000 to RM50000. Your business has to be based on the Shariah concept.
Tabung Usahawan Siswazah (TUS)
SME bank provides the Tabung Usahawan Siswazah and helps the Malaysian finance graduates. You need to have a diploma from a Malaysian university to get this. The maximum amount of this loan is RM500000. Rate is 4%.
Tabung Pembangunan Usahaniaga Peladang (TPUP)
Malaysian farmers are entitled to this loan. They can use this loan to make a profitable business. Lembaga Pertubuhan Peladang (LPP) implements this scheme.
SME Emergency Fund (SMEEF)
If you wish to renovate or rebuild your business, then this scheme is best for you. Any natural disaster might occur. Using this business loan in Malaysia you can easily get back on track. The maximum amount is RM100000.
Services, Manufacturing, and Engineering Scheme (SME Scheme)
If you have a business in the service sector or the manufacturing sector, then you can get this loan in Malaysia. Perbadanan Usahawan Nasional Berhad (PUNB) implements this scheme. The loan ranges from RM50000 to RM5 million. However, if you can contribute at least 20% of the total cost you can get this business loan in Malaysia.
Soft Loan for SMEs (SLSME)
Malaysian Industrial Development Finance Berhad (MIDF) designed the SME Loan for SMEs. A maximum of RM5 million is provided by this scheme with a 4% interest.
Business Startup Fund
If you want to start a tech company and need help, then this scheme is for you. This is a supportive scheme. SME Corporation Malaysia runs this scheme. The maximum amount is RM5 million with 3.5% interest.
Skim Kredit Penpeluaran Makanan
Agro Bank in Malaysia runs Skim Kredit Penpeluaran Makanan. If you decide to pursue the food industry then this scheme will help you. If your food production company is moderated by the Skim Kredit Pengeluaran Makanan you are entitled to receiving a maximum of RM500000 at an interest of 3.7% annually.
Young Entrepreneur Fund
If you are new in the business or an entrepreneur, then this fund will help you. It provides RM20000 – RM200000 to young entrepreneurs whose age is between 18 and 30 years old. This business loan has an interest rate of 5%.
It is a fact that business in Malaysia or anywhere takes a lot of initial investment. However, if you manage to bear the cost then you will have a good return. This initial cost can be hard. Although there are a few places where you can get help, finding the right help can be challenging. This article has all the information you will need for your business loan in Malaysia. Malaysia bank loan can be used for your next business in Malaysia.