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Funding Societies Micro Financing/-i is a business financing product that offers micro credit opportunities to SMEs. As a business owner, you can utilise the opportunities to maintain cash flow and enhance your business day-to-day. We offer both Micro Financing (conventional) and Micro Financing-i product based on the business activities and needs of the SMEs.

With Funding Societies Micro Financing/-i, you can apply for a financing amount of up to RM200,000 subject to an interest rate (for conventional) / profit rate (for Islamic) of 0.8% - 1.5% per month and a credit period of up to 18 months. 

Once you have accepted our offer, we will credit the approved financing amount to you, with applicable fees deducted upfront from the amount. 
 

Depending on your needs and the nature of your financing, you could apply for a credit period/tenure of 6, 9, 12, or 18 months. 

If this is your first time with us, here is a run-through on the application process. 

Step 1: Complete the Application form on our page

Step 2: Submit the documents required for the application

• Copy of all Director(s) NRIC/Passport

• Latest 6-months Bank Statement

• Latest 2 years personal Income Tax Assessment (Optional)
   

Step 3: Check your email for updates on your financing application

Step 4: Accept the approved financing offer from us (if you’re agreeable to the terms)

We will credit the funds into your designated business bank account upon successful funding exercise and your repayment cycle shall begin the following month.

Just like any other financing product, the following fees/charges will be applicable: 

Micro Financing-i

• Drawdown Fee: 5% of the approved financing amount, deducted upon disbursement. 

• Guarantee Fee: 5% of the approved financing amount, deducted upon disbursement.

Micro Financing(Conventional)

• Utilisation Fee: 5% of the approved financing amount, deducted upon disbursement. 

• Guarantee Fee: 5% of the approved financing amount, deducted upon disbursement.

Micro Financing-i 
Late Payment Charges which consist of Compensation (Ta’widh) and Penalty (Gharamah) will be charged subject to the following conditions:

• For default payment before maturity date: Compensation (Ta’widh) may be imposed at the rate of 1% p.a. on the overdue payment and shall not be compounded.
   
• For default payment after maturity date: Compensation (Ta’widh) may be imposed at the rate of 1% p.a. on the overdue balance (overdue principal and accrued profit). Funding Societies may charge both Compensation (Ta’widh) and Penalty (Gharamah) as Late Payment Charges at a maximum rate of 10% p.a.

Micro Financing (Conventional) 
If you are late in making your repayments, the following fees/charges will be imposed：

• Late Penalty Fee: RM200 per repayment cycle
• Late Interest Fee: 0.1% per day (non-compounded) on the amount in arrears

Early repayments are always encouraged, as SMEs are able to save more on interest and profit shared. 

For Micro Financing (Conventional), the early repayments are subjected to a 2% early repayment fee on the remaining principal amount to partially compensate our investors on the loss of their residual interest. 

If your core business involves the trading of anything on the following list, you may not be eligible for SME Micro Financing/-i :

1. alcohol;
2. gambling;
3. pornography;
4. tobacco and dangerous drugs;
5. entertainment-related companies – such as karaoke lounges serving alcohol, film production houses producing mainly illicit movies, cinemas that typically screen entertainment-related movies;
6. pork and its by-products;
7. food items that are prohibited under the teaching of Islam such as frogs, snakes, crocodiles;
8. shariah non-compliant massage parlours that allow treatment from the opposite gender;
9. prostitution;
10. interest-based lending, including credit sales with interest charges;
11. conventional insurance and unit trust agencies; and/or
12. production and distribution of idols, statues, and materials and places for worshipping other than Allah.