SME Bank Loan

It is a known fact that small and medium sized businesses are the key players in the Malaysian economy. When these SMEs are given all the support they need, they have the potential to turn into big multinational companies with thousands of employees. This would be of great benefit to the economy in terms of job creation and economic growth not forgetting increasing the tax revenue to the government. As such, the government in partnership with the private sector has come up with loan programs specially designed for small and medium sized business. The loans are mainly meant to provide capital for start ups and for business expansion. A business can also apply for the loans to increase its cash flow or working capital. Meant for small businesses with less financial muscle, the SME Loan Interest Rates are set considerably lower than those of the other loans.

Basically, the SME bank business loans have a lot of related services and benefits compared to other types of loans. Chief among them is that collateral is not a compulsory requirement, the interest rates are reasonable and the loan amount given can be able to start up or run a normal SME. Couple that with a grace period and simple application process and now every budding entrepreneur male or female intending to start a business and small business owners planning to expand their businesses have a reason to smile. The terms and conditions are not set in stone though; you can negotiate your own terms, that suit your business type and plans.