Soft Loan Scheme for Small & Medium Enterprises (SLSME)

  • To promote the development of small and medium enterprises in Malaysia
  • The scheme assists existing as well as new start-up enterprises in projects, fixed assets and working capital financing
Financing type
Financing rate

4% per year

Financing tenure
  • Land & buildings – Up to 25 years including a grace period of up to 2 years
  • Plant / machinery / equipment – Up to 7 years including a grace period of up to 1 year
  • Hardware & software – Up to 4 years including a grace period of up to 1 year
  • Revolving working capital – Up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible borrowers
  • Factoring – Up to 150 days
  • Term financing working capital - Up to 3 years including a grace period of up to 6 months
Financing amount (max)
  • Project financing: RM 5 million
  • Capital expenditure: RM 5 million
  • Working capital: RM 3 million
  • IT hardware and software: RM 500,000
Purpose of Financing
Working Capital
Eligibility criteria
  • SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956
  • At least 60% equity held by Malaysians
  • Possesses a valid premises licence
  • SMEs with shareholdings not exceeding 20% held by public-listed companies (only if applicable)
Application procedure
  • Applicants interested in obtaining financing from MIDF are required to provide detailed information to prove the feasibility and viability of their projects, and that the implementation of the project will be under competent management
  • Each application will be considered strictly on its merits through careful evaluation of the project. MIDF personnel will conduct inspection of premises, assess machinery / equipment and appraise the overall existing, as well as proposed operations, including the production layout, technology, turnover of stocks and plant/machinery utilisation. Credit checking is conducted on the applicant and proposed guarantors of the financing applied for
For further information

Fadzlan Abu Bakar
Head, Marketing & Product Development
Tel: 03-2173 8888

Malaysian Industrial Development Finance Berhad (MIDF)
Development Finance Division
Level 15, Menara MIDF,
82, Jalan Raja Chulan,
50200 Kuala Lumpur