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   Direct Access Guarantee Scheme (Conventional Only)

Background
Credit Guarantee Corporation (CGC) Malaysia Berhad was incorporated on 5 July 1972 under the Companies Act 1965 with Bank Negara Malaysia, and all the commercial banks and financial institutions operating in the country as its shareholders. CGC is established with the objective of assisting Small and Medium Enterprises (SMEs) without collateral or with inadequate collateral and no track record to gain accessibility to credit facilities from financial institutions.

CGC formulates and administers various guarantee schemes meant for specific target groups with the participation of all financial institutions. It also complements the Government's effort to develop and encourage Small and Medium Industries (SMIs) in the country. Its guarantee schemes are mainly categorised under The Main Scheme and The Programmed Leading Scheme.

Under the Main Scheme, SMIs may apply for New Principal Guarantee Scheme (NPGS), Direct Access Guarantee Scheme (DAGS), Islamic Banking Guarantee Scheme (IBGS) and Small Entrepreneur Guarantee Scheme (SEGS). While the Programmed Landing Scheme offers the Flexi Guarantee Scheme (FGS), Franchise Financing Scheme (FFS) and Youth Economic Development Program. Depending on individual financing requirements, SMEs may apply for loans from any financial institution under any CGC scheme except for DAGS.

DAGS was intorduced in July 2000 to enable SMEs to obtain financing from RM50,000 to RM1 million by applying directly to any CGC branches nationwide. All applications under DAGS will be evaluated and processed by CGC, which will then arrange for the required financing to be granted by participating banks. Under DAGS, eligible borroweres can enjoy guarantee coverage of up to 100%.
Allocation
Not Stated.
Who Can Apply

Eligible companies must be:

  • Malaysian owned/controlled private limited companies registered under the Companies Act 1965;
  • Viable and going business concerns. Companies must be in operation for at least one year.Start-up companies may also apply provided a satisfactory and reasonable cash flow indicating repayment capacity of about 1.5 times; 
  • Having a shareholder's fund of between RM50, 000 to RM10 million;
  • Having no adverse borrowing record with CGC or any financial institution; and
  • Not listed under BMC (Biro Maklumat Cek)
Approved Activities
  • All legal business activities under private limited companies, partnerships or sole-proprietorships
Funding
· Minimum funding  :  RM50,000
· Maximum funding  :  RM3 million
· Purpose of facility  :  All credit facilities under DAGS are solely for working
 capital requirements and/or asset acquisition only
· Credit facilities  :  Term Loan/Fixed Loan,Overdraft,Tradelines
· Guarantee cover  :  100% which shall be valid up to the maturity date of the
 loan
· Guarantee fee    

The guarantee fee will be based on the guarantee cover, payable annually in advance

 

Current DAGS

DAGS TUB2

DAGS FF TUB2

%

1.5

2.0

2.0

Borne by

Borrower

Financial Institution

Financial Institution

     
· Lending Fee    
     

 

Current DAGS

DAGS TUB2

DAGS FF TUB2

Lending Rate
(%)

1.0 + BLR on monthly rest

4.5

4.0

     
· Processing fee  : RM200 for each successful application, payable to CGC
· Participating financial institutions shall be those appointed by CGC
Submission of Application and Communication

The prescribed application form may be downloaded from the CGC website at

www.cgc.gov.my or www.iguarantee.com.my. Submission of application together with all relevant supporting documents must be made directly to any CGC branch. For further enquiries, please contact:

Attn:                 Credit Guarantee Corporation Malaysia Berhad (CGC)

                        Level 13-16, Bangunan CGC

                        97, Jalan SS7/2

                        47301 Petaling Jaya

                        Selangor Darul Ehsan

Tel:                   +(603) 7806 2300

Fax:                  +(603) 7806 3308

E-mail:              mailbox@cgc.gov.my

 

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