| FAQs on Credit Guarantee Corporation (CGC) |
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Do we need to submit separate applications to the participating financial institution and CGC? |
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| No. For DAGS, you can approach the CGC branch nearest to you and CGC will assist you to obtain the loan from the participating financial institution. For non-DAGS, when you apply for a loan or any other credit facility to be covered by CGC, the participating financial institution will process and evaluate your application and assist you to obtain the required CGC guarantee loan or credit facility. |
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How do I qualify for a CGC-guaranteed loan? |
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| Depending on the specific scheme selected, you must be a Malaysian citizen or resident-controlled company, operating a registered or licensed business in Malaysia, and your net assets or shareholder's funds or total existing business borrowings meet the requirements of the respective guarantee schemes. |
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How many guarantee schemes are available through CGC? |
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| Currently, CGC offers six guarantee schemes. To determine which one best suits your needs, you can contact CGC or visit its website at www.iGuarantee.com.my. |
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Can I approach CGC directly for a guarantee cover? |
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| You can only approach CGC directly for applications relating to Direct Access Guarantee Scheme (DAGS). |
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How can I benefit from using the iGuarantee? |
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| iGuarantee provides a convenient one-stop centre for loan applications from SMEs. Your loan application will be posted on CGC’s portal, which can be accessed by all participating financial institutions. Thus it saves you both time and money as you do not have to travel to different financial institutions and complete multiple loan applications. In addition, you will be able to obtain competitive offers on your loan application. |
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Are there any costs/fees involved in posting loan applications in iGuarantee? |
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| There are no fees levied on the applicant. |
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Is it safe to submit my financial information online? |
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| CGC has taken all necessary precautions to ensure safety and security of the data collected and transferred through iGuarantee. |
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Which financial institutions participate in CGC schemes? |
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| The list of participating financial institutions are available from the CGC website. |
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What types of credit facilities do CGC guarantee under its schemes? |
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| Among the credit facilities guaranteed are term loans, overdrafts, letter of credit, export credit refinancing, bills purchased, tradelines, trust receipts, hire purchase, leasing, bankers acceptances and other facilities determined by CGC from time to time. |
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Is there a limit to the number of guarantees I can obtain from CGC at any point in time? |
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| Borrowers may be allowed to enjoy multiple guarantees subject to the eligibility criteria being met and within their repayment capacity. Multiple guarantees can be for different schemes, under the same financial institution, subject to the limit on aggregate borrowing. For borrowers with existing CGC guarantee cover, they must not have bad record with CGC. |
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How is the guarantee fee charged? |
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| The guarantee fee is imposed on the total guarantee cover amount and will be paid to CGC by the participating financial institution at the beginning of the guarantee period and its anniversary dates. Your account will be debited for the fee paid on your behalf. However in the case of Flexi Guarantee Scheme, the fee is absorbed by the participating financial institution. |
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Can I get a rebate on the guarantee fee paid if I repay my loan? |
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| You can get a rebate under the following circumstances: |
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For all guarantee schemes, except for the revised New Principal Guarantee Scheme and Islamic Banking Guarantee Scheme (effective 1/11/2002), you can get a 100% refund of the guarantee fee if you have fully repaid your loan and the participating financial institution has informed the cancellation of guarantee cover to CGC within the three months period from the date of the approval as stated on the Letter of Guarantee (or its anniversary dates thereafter). No guarantee fee is refunded if the participating financial institution notifies CGC on the cancellation of the guarantee after the third month from the Letter of Guarantee approval date (or its anniversary dates thereafter) |
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For the revised New Principal Guarantee Scheme and Islamic Banking Guarantee Scheme, you can get a refund as per (i). However, you will only receive 50% refund if the participating financial institution submits the notification of cancellation of your guarantee cover between 91-180 days from the date of the Letter of Guarantee (or its anniversary dates thereafter) in circumstances whereby: |
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CGC guarantee coverage is no longer required due to the cancellation of the unutilised credit facility; or |
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A new Letter of Guarantee supersedes the existing Letter of Guarantee when the participating financial institution grants an additional loan to you; or |
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The existing guarantee coverage agreement is renewed prior to its expiry |
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