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Micro Financing vs Micro Credit Line
Micro Financing vs Micro Credit Line
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Written by JC
Updated over a week ago

What is the product about?

Micro Financing

Micro Credit Line

Micro financing is specifically designed for micro SMEs that need financing in a single lump sum for business expansion with a fixed payment schedule on an equated monthly installment basis.

With Micro Credit Line, you're granted a line of credit which you're able to draw on as and when required for business purchases or emergencies. Pay return and fees based on your utilised amount.

Which is best for your business?

Micro Financing

Micro Credit Line

Suitable for one-off expenses and long-term capital for business expansion or project financing.

Suitable for businesses where they frequently need short-term financing for business expenses and unexpected expenses or as an emergency fund.

*You may apply for Micro Financing and Micro Credit Line at the same time but the overall qualified amount could split among both products.

What are the financing terms and charges?

Micro Financing

Micro Credit Line

1. Return rate: 0.8% - 1.5% per month

2. Financing amount: up to RM200,000

3. Payment tenure: 3 - 18 months

4. Guarantee fee: 5% of the approved amount (charged upon disbursement)

5. Utilisation fee: 5% of the approved amount (charged upon disbursement)

6. Early Payment Fee: 2% on the remaining principal to partially compensate the investors for the loss of the residual return.

*No fees will be charged if you decided to decline our offer.

1. Return rate: 1.5% per month on the utilised amount

2. Facility limit: up to RM 100,000

3. Availability period: 12 months from the date of agreement execution

4. Facility fee: 1% of the approved credit limit (one-off)

5. Utilisation fee: 1% of the approved utilised amount for each successful drawdown (will be deducted from the approved amount) and 1% on the monthly utilised amount (for rollover only)

6. Early Payment Fee: Waived

*No fees will be charged if you decided to decline our offer.

What is the process flow?

Micro Financing

Micro Credit Line

Step 1 - Onboarding

Apply for Micro Financing and receive the approval within 2 working days.

Step 2 - Acceptance & Disbursement

Accept your financing offer upon approval and receive the financing within 2 working days.

Step 3 -Payment

Pay the financing in equated monthly installment as scheduled.

Step 1 - Onboarding

Apply for Micro Credit Line and receive the approval within 2-3 working days.


Step 2 & 3 - Drawdown

Submit financing request and receive the financing within 2 working days.


Step 4 - Payment

Plan for your payment schedule based on your cash flow cycle. Your credit line will be re-credited upon full settlement of the principal and return.


Step 5 - Drawdown again

Repeat Step 2 & 3.

How does the payment work?

Micro Financing

Equated monthly installment.

The installment per month with different return rate and tenure is as shown below:

Micro Credit Line

It is something similar to your overdraft facility!

(i) Principal Payment: You can settle the loan by paying the Principal amount and total Return due before/on the loan due date via Instant Transfer. The early you make the settlement, the more return you can save and there are no early settlement fees or charges imposed.

(ii) Rollover: You can rollover the principal payment to next month by paying the monthly return due and the respective monthly Utilisation Fee only. The Return and Utilisation Fee is deducted via direct debit mandate on the due date.

What are the documents required?

Micro Financing

Micro Credit Line

  • Copy of NRIC (Malaysian) / Passport (Non- Malaysian) of all Directors and Personal Guarantors

  • Latest 6-month business bank statement

  • Latest 2 years personal Income Tax Assessment (Optional)

  • Copy of NRIC (Malaysian) / Passport (Non- Malaysian) of all Directors and Personal Guarantors

  • Latest 6-month business bank statement

  • Latest 2 years personal Income Tax Assessment (Optional)

  • Online banking facility required

What if I can't make the payment on time?

Micro Financing

Micro Credit Line

  • Compensation : RM200 per 30 calendar days

  • Late Return Fee: 0.1% per day (non-compounded) on the arrears amount

  • Compensation : RM250 per 7 calendar days

  • Late Return Fee: 0.1% per day (non-compounded) on the arrears amount

Terms and Conditions Apply

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