Halal Finance
@ Halal | July-August . 2022
GO Halal for success Position your business for a competitive edge with GO Halal SME Financing Programme
BANK ISLAM Malaysia Bhd and the Halal Development Corporation Bhd ( HDC ) have launched the GO Halal SME Financing Programme , with an initial funding portfolio of RM100 million to support the development of the country ' s halal ecosystem and industry .
GO Halal SME Financing Programme is a multi-financing product package that includes term , revolving , and trade facilities designed for SMEs to embark on Halal Certified Business .
The package is exclusively for eligible SMEs enrolled under HDC ' s Halal Integrated Platform ( HIP ) to obtain financing for Halal Certification , Consultancy and Training Costs ; Business Reducing Term Takaful ( BRTT ) Contribution ; Working Capital ( WCR ) and Capital Expenditure ( CAPEX ). Facility type :
• Business Financing-i ( BFi ) - TF-i
• Business Cash Line-i ( BCL ) - CL-i
• Multi Trade Facility-i ( LC-i / TWCF-i / TTQ-i / IAB-i / SG-i / BG-i )
Financing amount :
• RM100,000 up to RM1 mil ( Sole-prop / partnership )
• RM100,000 up to RM3 mil ( Sdn Bhd ) Eligibility criteria :
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• Applicants are registered members of the Halal Integrated Platform ( HIP ).
• A private limited , partnership or sole proprietor company , or a professional services provider .
• Venture must fall within the SME definition .
• Registered with the Companies Commission of Malaysia ( SSM ), or authorities / district offices in Sabah and Sarawak , or statutory bodies for professional service providers .
• Malaysians residing in Malaysia who hold
Halal Certification , Consultancy
& Training Costs
Financing amount is inclusive of legal documentation costs and SJPP guarantee for the first year
GO HALAL SME FINANCING PROGRAMME – Onboarding Process
Working Capital Requirement ( WCR )
Purpose of Financing :
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Capital Expense ( CAPEX ) - only for new machines and equipment
Business Reducing Term Takaful ( BRTT ) Contribution Cost
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Note : The facility cannot be utilised to refinance the existing facility granted by the same or other bank . The ruling was imposed by SJPP to promote economic growth .
a minimum of 51 per cent shareholding or ownership in the SME .
• The business has been in operation for at least 2 years and earned a profit of at least one ( 1 ) of the last two ( 2 ) financial years .
• Shareholding by public-listed companies and government-linked companies ( if any ) in the SME shall not exceed 20 per cent .
• Receiving advisory services and participating in training offered by HDC .
• Shareholders ' funds must not be more than RM20 million based on the latest audited account .
The Bank will conduct verification on the required documents , and perform due diligence , credit & risk assessment on the applicant in accordance with the Bank ’ s guidelines and policies , and those eligible shall be submitted for approval .
Existing HIP Member
All applicants will have to register with HIP in order to apply for the Go Halal SME Financing Programme . Applicants can register at https :// hip . hdcglobal . com /
New and Existing Bank Islam Customer
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Information required by Bank Islam to initiate the financing application from HIP :
a ) Customer Name b ) Contact Person c ) Contact Number d ) Business Location
The information shall be sent via email to : sme-assist @ bankislam . com . my ( to include the indicator via system on leads from HDC )
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SME Banking to verify halal certification / consultancy / training invoice with HDC
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Monthly bulk reconciliation report on successful application
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Bank shall conduct verification documents , and conduct due diligence , credit & risk assessment & qualidied application shall be submitted for approval
A digital platform that fosters the growth of Halal SMEs
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STRONG digital presence and value-driven digital marketing strategy will help a business reach more potential customers and increase its brand awareness .
To support and enable the digital growth of SMEs , Bank Islam Malaysia Berhad ( Bank Islam ) introduced the SMEXpert mobile app , specially designed as a comprehensive one-stop SME platform that would assist SMEs to enhance business knowledge , source for financing solutions , advertise business offerings and build significant business network .
SMEXpert by Bank Islam serves as a halal digital ecosystem platform for SMEs to foster halal partnerships with the government , private sectors and Islamic financial institutions . It is created to improve business practices through financial inclusion .
As a value-added service , the application provides Bank Islam ' s SME Banking customers a marketing platform to promote their businesses and maximise target outreach at no cost or commission fees .