Financial institutions and banks are getting stricter with their protocol especially with anything that involves a monetary form especially if its a loan. Many business owners struggle to obtain an SME loan and sometimes, you won’t get the reason too. Hence, it makes things even more complicated and businesses are forced to close down due to this.
Every business owners dream to get working capital to expand their business or sustaining the current operation especially during a hard time such as MCO.
Financial institutions have a strict requirement when applying for SME loan in Malaysia and with COVID-19 still lingers in 2021, it going to be even tougher.
Not only that, with good credit history and financial positioning does not guarantee you a security of the funds you need if you’re not well prepared in answering some questions from the lender.
These financial facilities make promoting and supporting local firms much easier.
Fees And Interest Rates That May Be Charged Processing Fees:- Varying lenders may charge different processing costs for these loans.
The lender may also take into account criteria including collateral, loan amount, term, and the applicant's creditworthiness, repayment capacity, and previous loans.
Criteria For Eligibility Despite the fact that each lending organisation has its own set of qualifications, all of these loans must meet a set of basic criteria.
Criteria for eligibility to get a loan are by Aspire - Purpose:- The loan application must be used to satisfy company needs such as acquiring machinery or raw materials, obtaining working capital, promoting products/services, increasing the employee base or product line, entering a new geographic region, and so on.Age:- The candidate must be between the ages of 25 and 55.Experience:- A minimum of three years of business experience is required.Proof:- At the very least, the applicant must present the previous year's company IT returns.Business style:- Physicians, chartered accountants, architects, and company secretaries are examples of self-employed professionals who can generally acquire a business loan.
SME finance is available to partnerships, private limited corporations, and limited liability partnerships.Turnover in business:- The terms of a company's turnover vary widely according to the lender and loan type selected.
