A government-linked guarantee can substitute for collateral, but not for repayment ability. Banks still assess cash flow, conduct and business viability.
SJPP or CGC covers an agreed portion of the lender's loss if a borrower defaults. Coverage commonly reaches 70% to 80%, depending on the scheme, reducing the bank's unsecured exposure.
The borrower remains liable for the full debt. The guarantee protects the lender and does not erase director guarantees, recovery action or CCRIS consequences.
SJPP administers government schemes announced through national budgets. Applications normally go through participating banks, which register the guarantee after approving the facility.
CGC provides bank-arranged guarantees, selected direct financing products and the imSME matching platform. The bank usually determines which route fits the company's profile and amount.
Applicants generally need Malaysian registration and ownership, SME status and viable cash flow. Guarantee fees are commonly around 0.5% to 1% per year on the guaranteed amount, though exact terms vary by scheme.
Usually no. Apply through a participating bank; the bank submits or books the SJPP guarantee when approving the facility.
No. It replaces part of the collateral protection, but the bank still checks cash flow, DSCR, CCRIS/CTOS and business viability.
No. It protects the lender. The borrower and guarantors remain responsible for the debt.
