MARA Business Financing Facilities, Here’s What’s Available

Earlier this month, Malaysians were shocked when news of Majlis Amanah Rakyat (MARA) moving to file for bankruptcy against a local celebrity surfaced. According to news reports, the actress failed to repay her MARA loan and was unresponsive when MARA approached her regarding the repayments, which led to MARA taking the drastic action.

Although the celebrity involved has since repaid part of her loan, the fact that MARA provided business loans came as a surprise to many Malaysians. This is due to the fact that most Malaysians know MARA for their education initiatives, such as their education loans and scholarships.

And this is why in this article, we’re going to help you understand what kind of business loans MARA offers.

Types of business financing by MARA

Did you know? MARA offers 14 different types of business financing facilities, all with different goals and eligibility requirements.

Let’s have a look at each and every one of them.

Youth / MARA Educational Institution Graduate Entrepreneur Programme (PUTRA)

Purpose: To provide financing facilities for micro businesses for all sectors such as retail, manufacturing and services except agriculture and livestock farming.

Maximum limit: RM10,000

Financing Scheme for Persons with Disabilities (OKU)

Purpose: To provide a special financing facility for Persons with Disabilities (OKU) to help them be independent in managing their own businesses

Maximum limit: RM50,000.

Financing Scheme for IPMA Graduates (SEMAi)

Purpose: To provide business financing for IPMA graduates to operate a commercial business.

Maximum limit: RM50,000.

Special Business Financing Scheme for Women (DanaNITA)

Purpose: To enhance Bumiputra women’s participation in entrepreneurial activities, empower existing Bumiputra women entrepreneurs and increase household income

Maximum limit: RM150,000.

Professional Financing Scheme (ProSPEC)

Purpose: To provide business financing facilities under the Professional Entrepreneur Development Programme (ProSPEC) and to increase the participation of Bumiputera entrepreneurs in the field of professional entrepreneurship

Maximum limit: RM500,000.

Technical Entrepreneur Development Programme (PUTEK)

Purpose: To create new entrepreneurs in the technical field based on their existing skills

Maximum limit: RM500,000.

Business Financing Scheme (SPiM)

Purpose:To provide business financing facilities to Bumiputera entrepreneurs in major sectors such as Trade, Services and Manufacturing except for Agriculture and Livestock Farming

Maximum limit: RM500,000.

MARA Integrated Smart Auto (MISA)

Purpose: To increase the number of Bumiputera entrepreneurs in automotive that provide 3S (Sales, Service & Spare parts) and to provide opportunities and help entrepreneurs upgrade their existing workshop

Maximum limit: RM1,000,000.

Industry Value Chain Development Programme – (PRiN)

Purpose: To contribute to the growing number of Bumiputera entrepreneurs in middle-class business in preparation for becoming a top entrepreneur and eventually a global player and to strengthen the participation of Bumiputera entrepreneurs throughout the industry value chain, and push them to a higher level to eventually become the small scale support for top entrepreneurs and form a niche market

Maximum limit: RM1,000,000.

Express Contract Financing Scheme (SPiKE)/SPiKE GLC

Purpose:Provide short-term financing facilities to Bumiputera contractors in construction, supply, service and electricity contracts

Maximum limit: RM1,000,000.

MARA Entrepreneur Guarantee Scheme (SJUM)

Purpose: Offers a financing facility to Bumiputera entrepreneurs using funds from the bank and MARA acting as the guarantor of the loan provided.

Maximum limit: RM2,000,000.

Bumiputera Export Promotion Programme (GEB)

Purpose: To provide financing facilities to assist potential Bumiputera SME entrepreneurs penetrate international markets

Maximum limit: RM2,500,000.

Other than these loans, MARA also offers other financing facilities as well, such as;

Business Certification Financing Scheme (CERT)

Purpose: Provide funds / financial support to entrepreneurs in the pursuit of halal certification.

Maximum limit: RM100,000

Business Premises Purchase Financing Scheme (SPiM PREMIS)

Purpose: Supporting entrepreneurs to have their own properties and increase the ownership of non-financial assets for Bumiputera.

Maximum limit: The maximum financing limit is 95% of the purchase cost of the premises, while the remaining 5% must be contributed by the applicant. For Sole Proprietorship / Partnership the limit is RM1,000,000.00 and for Private Limited (Sdn. Bhd) the limit is RM2,000,000

And so that is all of the financing facilities available from MARA. Now let’s get to the next question, which is are you eligible for any of this?

Am I eligible for any of MARA’s financing facilities?

Now this question is a bit tricky to answer, because all of MARA’s financing facilities come with different eligibility criteria. Here are some of the universal eligibility criteria to help you get started;

• Malaysian citizen and Bumiputera
• Have a valid business registration (SSM)Have been operating the business for at least six (6) months
• Have a license / permit / letter of authorization from the local authority (PBT)
• Operate a full-time business
• Engaged in a shariah-compliant business

So first you have to check if you fit all of the prerequisites first. Then, what you need to do is to go to MARA’s business financing facilities page right here, and check out the specific eligibility requirements for each of them.

How do I apply for MARA’s financing facility?

Now that you know the eligibility requirements, let’s look at actually applying for it.

For MARA’s business financing facility, there are two ways for you to apply;

• Walk in to any MARA office and apply directly to them or,
• Online application which can be done on every facility’s website.

So there you have it! MARA’s financing facilities are a part of the government’s initiative to help more Bumiputera entrepreneurs to prosper and drive the economy, so if you are eligible to apply and looking for business financing, they might be worth a look.

For more information on business financing, go to www.imoney.my/business-loan to compare and find the best options for you.