What Is It

SME Bank (Small and Medium Enterprises Development Bank Malaysia Berhad) is a government-owned development financial institution providing specialized financing packages, loans, and micro-financing to support Malaysian SMEs and micro-entrepreneurs.

Key Financing Schemes

  • SME Technology Transformation Fund (STTF): Up to RM3 million for digitalization/automation.
  • Young Entrepreneur Fund (YEF): Loans from RM50,000 to RM100,000 for entrepreneurs aged 18-30 with interest rebates.
  • IBS Digest Fund: Financial support for contractors using Industrialised Building Systems (IBS).
  • Women Entrepreneur Financing: Specialized loans for women-led companies.

    • Who Is Eligible

  • Malaysian-owned business (at least 51% equity).
  • Classified as an SME based on national definitions (sales turnover < RM50 million or employees < 200).
  • Business must have been active for at least 2 years (exceptions apply for startup funds like YEF).

    • Required Documents

  • SSM Registration Documents: Form 9/24/49 or EzBiz profile.
  • Financial Audited Reports: 2 years of audited financial statements.
  • Bank Statements: Past 6 months of corporate bank statements.
  • Directors' MyKad: Copies of directors' identity cards.
  • Business Plan: Detailed project plan and cash flow projections.

    • Step-by-Step Procedure

    1. Check Scheme: Visit the SME Bank website or branch to match your business need with the right scheme. 2. Apply Online/In-Person: Submit your business profile and financial logs through the SME Bank online loan application portal. 3. Credit Assessment: The bank conducts a credit evaluation, site visit, and checks CTOS/CCRIS records. 4. Letter of Offer: If approved, sign the Letter of Offer and complete security documentation. 5. Disbursement: Funds are disbursed progressively or in a lump sum depending on project milestones.

    Cost & Processing Time

  • Cost: Application is Free. Interest rates range from 3.5% to 6.5% per annum depending on the scheme.
  • Processing Time: Loan evaluation takes 30 to 45 working days.

    • Where to Apply

  • SME Bank Branches: Any SME Bank Regional Center across Malaysia, or online via the SME Bank Financing portal.