BizFunds - MIDF

Business Fundings

SOFT LOAN FOR FACTORY RELOCATION

Objective

The objective is twofold. Firstly, it is intended to provide assistance to SMEs in relocating their unlicensed factories to an approved industrial site. Secondly, it is for the purpose of acquiring assets which has become necessary as a result of the relocation exercise.

Maximum Financing Rate: 4 per cent per annum.
Maximum Tenure: 15 years.
Minimum Financing: RM50 thousand.
Maximum Financing: RM1million or 70 per cent of the cost of the factory and other approved capital expenditure.

The Agency: MIDF

Eligibility Criteria

Malaysian owned companies which are incorporated under Companies Act 1965 with the following features are eligible to apply:
1. At least 60 per cent of the equity is held by Malaysians.
2. The number of full-time employees does not exceed 150 staff and its sales turnover does not exceed RM25million.
3. The company must have been in operation for at 3 years at the existing location.

Purpose of Financing

1. Purchase of ready made factories.
2. Purchase of factory lots and construction of factory including related infrastructure.
3. Costs of purchase of related machinery and equipment due to relocation.
4. Financing should not be used for refinancing of existing credit facilities.

Eligible Sector

1. Manufacturing.
2. Manufacturing related services.

Contact

Malaysian Industrial Development Finance Berhad (MIDF)
Tel: 03-21610066/ 1166
Fax: 03-21615973 / 21613906
website: http://www.midf.com.my