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 MBIDG will be jointly guaranteed by Credit Guarantee Corporate Malaysia Berhad (CGC) and an appointed private Guaranteeing Entity (GE).
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 SMEs' debt obligations (Makful ‘Anhum), with the Investors being the beneficiary (Makful Lahu).
3. What is the average return rate for this product?
7% per annum.
4. What is the payment structure?
Monthly payments of returns; Principal and returns on the last month of the tenure.
5. Is there an early payment fee?
No, there is no early payment fee for investors.
6. Is there late return compensation?
No, there is no late return compensation for investors.
7. What is the tenure?
1 - 18 months.
8. What is the Service Fee?
15% on returns received.
9. What is the minimum investment amount?
Minimum Investment Amount: RM100
10. What happens in a case of Delinquency / Default?
When the Issuer misses the payment (≥ 15 days past due (DPD)), the Guarantors will step in and repay the principal and return due to Investors. The rights to claim of debt from the Issuer will then be transferred to the Guarantors.