TEKUN Financing – Faster and Efficient Financing Facility For Business Needs
TEKUN Financing: Corporate And Personal Financing For Business In Malaysia
Financing for business sometimes could be long and a confusing process. Well, it is true that there are various financing schemes available to kick start and move on with business in Malaysia, but most of the time, you are looking for a program which isn’t hasty, simple to understand and convenient at the same time. Well, one of the easiest ways to finance your business as a Bumiputera will be TEKUN financing, a government based incentive run by TEKUN Nasional, an agency under the Ministry of Entrepreneurial and Cooperative Development of Malaysia. Here is everything you need to know about the program.
TEKUN Financing: What is it?
TEKUN financing is a loan scheme in Malaysia, which provides Small to Medium business owners from RM 10,000 to RM 100,000 based on the business size and requirements. The loans are categorized in to schemes, the Small Loan Scheme (SPK), under which the loan amount is RM 10,000 to RM50,000 and the payment period is up to 5 years while the other is Medium Loan Scheme, where the amount ranges from RM 50,000 to RM 100,000 and the payment period, in this case, can be as long as 10 years. Depending on the amount of loan, the repayment period could be anywhere between 6 months and ten years. Also, the tekun loan interest rate is 4% per annum, and while making interest deposits, the business should also make at least 5% savings of the loan value per annum.
Requirements and Conditions
Here are the requirements and conditions for an entrepreneur to be eligible for financing under the tekun programme.
- The individual should be Bumiputera and A Malaysian citizen.
- In case the applicant doesn’t have a business, they will have to contribute 20% of the financing themselves.
- The individual should be 18n to 60 years old.
- The applicant can’t be bankrupt.
- The company should have a 100% Malaysian ownership.
- The company should be registered in Malaysia with SSM and should have all the required license.
- The business should have a premise and a valid premise license.
- The paid capital can’t be more than RM 300,000.
- Only one financing is allowed for one household.
- Business financing can’t exceed RM 100,000.
- In case the company is a partnership, the partner(s) should be Bumiputera, and everyone’s authorisation letter is needed for the loan.
- In case of Sdn Bhd. (Private limited companies), the company should provide the company with resolutions and goals.
- The financing is distributed on behalf of the company if the funding is RM 20,000 or more.
- The approval of financing of more than RM20,000 in case of a sole proprietorship may depend on the individual’s personal account.
Before making an application, you will have to gather all the documents including your business incorporation certificates, a copy of the NRIC certificate, company portfolio e.t.c that show you meet the requirements and are okay with the conditions. Then, you could approach the nearest regional or state office of TEKUN Nasional to apply for the scheme.
Note: Depending on the amount of loan, you will also have to pay the relevant processing fees. They are given in the table below.
|Processing Fee (RM)||150||200||250||300||500|
Well, this was all for the TEKUN financing. I hope this article will help you. Also, you may learn more by reading incorporation FAQ in Malaysia.