1. What is MBIDG - Guaranteed Islamic Investment Note (Term Financing - CGCD)?
MBIDG is the newest addition to the Guaranteed Investment Note product group. It shares many similarities with the existing MBIBG - Guaranteed Islamic Investment Note (Term Financing). Like MBIBG, MBIDG is designed for smaller and younger SMEs, offering financing based on the Commodity Murabahah concept via Tawarruq.
2. What are the key differences between MBIDG and MBIBG?
One of the key differences is that the financing facility pursuant to the issuance of MBIDG will be guaranteed by:
Credit Guarantee Corporation Malaysia Berhad (CGC Malaysia), who will provide guarantee cover of 50% of the outstanding principal financing facility amount*, and
The appointed private Guaranteeing Entity (GE), who will provide guarantee cover for the remaining 50% of the outstanding principal and returns.
The Guarantee Scheme is structured in accordance with the Islamic principle of Kafalah. In this arrangement, the Guarantor (Kafil) pledges to assume responsibility for the Issuers' debt obligations (Makful ‘Anhum), with the Investors being the beneficiary (Makful Lahu).
*subject to full compliance with CGC Malaysia’s terms and conditions.
3. What happens in a case of Delinquency / Default?
When the Issuer misses the payment (≥ 15 days past due (DPD)), the GE will step in and pay the outstanding principal and return due to Investors. The legal rights for claim of debt recovery against the Issuer will then be transferred to the Guarantors
4. What is the average return rate for this product?
7% per annum.
5. What is the payment structure?
Monthly payments of returns; Principal and returns on the last month of the tenure.
6. Is there an early payment fee?
No, there is no early payment fee for investors.
7. Is there late return compensation?
No, there is no late return compensation for investors.
8. What is the tenure?
1 - 18 months.
9. What is the Service Fee?
15% on returns received.
10. What is the minimum investment amount?
Minimum Investment Amount: RM100