For micro-entrepreneurs wanting to grow, the micro loan from Bank Simpanan Nasional (BSN) is an excellent option. Micro Loan BSN gives an opportunity to those that work hard and need additional capital for their business with more flexible terms and a lower interest rate. Here’s our review of BSN micro loan requirements, eligibility, documents needed & benefits this cash loan offers to micro-entrepreneurs.
Eligibility for BSN Micro Loan Application
Before you can apply for the BSN micro loan, there are some eligibility requirements to fulfill. This program is geared towards aiding micro-entrepreneurs who have faced havoc with their businesses, particularly in the aftermath of COVID-19. Here are some of the eligibility requirements worth knowing.
Micro Business Criteria
The business applying for a BSN micro loan must fulfill these criteria:
- Business Type: Only available to micro businesses, i.e. Sole proprietorships or partnerships, or Sdn Bhd (Private Limited) companies.
- Citizenship Status: Only Malaysian citizen business owners.
- Business Operation Duration: Must have been operating for at least 6 months prior to applying for this loan.
- Full-time or Part-time Business: The business can be run on a full-time or part-time basis, but must have ample room for growth.
Requirements of Owners and Directors
Aside from the properties of the business, there are certain requirements that governing owners and directors must also meet. Here’s what BSN have to say about it:
- Private Entrepreneurs: A sole proprietor or a company director of an Sdn Bhd company must be a Malaysian citizen and be at least 18 years old.
- Good Financial Standing: A clean financial record, with no serious debt issue with other banks.
- No Criminal Record: This is a security requirement, no record that would raise any red flags that might justify a loan rejection.
Documents Required for Application
Once you confirm that you meet the above requirements, then the next step is to gather the required supporting documents in order for BSN to process your application for a micro loan. Here’s what you should prepare:
Documents for Registration and Identification of Owner
- Company registration certificate: A company registration certificate with the Companies Commission of Malaysia (SSM) is an important document that proves the legal status of your business.
- Copy of Identity Card: Proof copies of the identity card of the sole proprietor, company director, or partner. (This proves you are who you say you are.)
Financial and Bank Document
- Bank Account Statement: A copy of the company’s bank account statement for the last three months to prove the business’ financial smoothness and cash flow.
- Other Financial Documents: Depending on the business type and structure, additional documents may be required, including tax statements or other relevant business documents.
BSN Micro Loan Application Steps
The steps on how to apply for cash loan via the BSN micro loan program are as follows:
- Step 1: Register on MyBSN - If you don’t have a MyBSN account already, your first step is to register so that your all application for a loan could be carried out with ease.
- Step 2: Contact a BSN Financing Officer: Once your registration is complete, you may contact a BSN Business Financing Officer nearest your location. You can check the list of BSN officers from the official BSN Facebook page to know their most suitable Officer.
- Step 3: Submit Application and Documents: Submit the application along with the necessary documents. Make sure that all documents are complete and current.
- Step 4: Wait for the Assessment Process: BSN will process your application once they receive it. This may take a few weeks depending on how many applications they get.
Application Evaluation and Decision
Following submission of your request form BSN will determine your eligibility based on the documents and information that you submit. A decision will be announced following the completion of the evaluation. If your application is successful your business will be awarded a BSN micro loan.
- Processing Time: While the processing time is not disclosed, entrepreneurs can keep track of the most recent news by following the official BSN Facebook page.
- Approval or Rejection Decision: If your application is granted, your business will receive assistance in the form of a cash loan.
Benefits of the BSN Micro Loan for Entrepreneurs
Most entrepreneurs starting with a low capital base are micro-entrepreneurs, and the BSN Micro Loan is one such lending program that offers a range of benefits towards empowering these entrepreneurs, especially in the recovery and growth phases of their businesses. Here are some of the few benefits of the BSN micro loan:
- Boosted Financial capital: With the cash loan, micro-entrepreneurs can fortify their business capital to restock, settle staff salaries or even implement an aggressive advertising campaign.
- Lower interest: One of the best things about the BSN micro loan is its lower interest than most commercial loans making it easier for entrepreneurs who might be experiencing financial difficulty to manage.
- Flexible Repayment Terms: BSN offers flexible repayment terms, thus allowing micro-entrepreneurs to plan their cash flow better.
- Post-Covid-19 Recovery Assistance: The pandemic has already affected many businesses, and this loan is an important intervention in assuring long term business continuity.
Practical Tips:
- Ensure Updated Company Bank Statement (especially if you don’t have a bank statement) – This is one of the most important documents in the application process. Before applying, you need your company account statement, and it must be a steady stream of income.
- Don’t Miss The Deadline – Every application has to be submitted in the period set by BSN. If you miss the deadline, you may just lose your application.
- Be Ready For More Questions – BSN may ask for more information during the application process.
Understanding the qualifications for the BSN micro loan can help you be a more qualified applicant when applying. So don’t waste any time and take action on this now for that financial assistance that can help grow your biz.
FAQ
Who can apply for the micro loan?
Only those micro-entrepreneurs that owned a sole proprietorship, partnership or Sdn Bhd business that has been operating for at least six months and is owned by a Malaysian citizen.
What are the requirements to apply for the BSN Micro Loan?
The entrepreneur must have a business operating for a certain period of time which is usually at least six months, the business must be owned by a Malaysian citizen and the entrepreneur should not have any bad credit or a criminal background which might hamper the application.
What documents do I need to apply?
The following documents have to be sent for your application, the company registration certificate (SSM), the owner/director’s identity card copy, the company’s bank account statement for the last 3 months and other financial documents if required.