For entrepreneurs who want to grow their business furthermore, the BSN business loan is a smart and practical choice. Bank Simpanan Nasional (BSN) offers a variety of loans designed to help entrepreneurs from all sectors to grow and develop their businesses. Below we look at the types of loans offered, eligibility requirements, benefits, and how to obtain the BSN business loan that’s right for you.
Types of BSN Business Loans
BSN business loans include a range of loans that can meet the funding needs of a variety of businesses. BSN offers two basic types:
Conventional Loans for SMEs
Conventional BSN business loans are generally aimed at entrepreneurs in “traditional” sectors such as manufacturing, services, and retail, and some of the examples of conventional loans available are:
- TemaNiaga Loan: Offers financing from RM 5,000.00 to RM 50,000.00 for the manufacturing sectors services and retail.
- TemanMesra Loan: With financing amounts of RM 5,000 to RM 50,000 this loan is also for the manufacturing and services sector.
- PKBC: For permanent residents of Kampung Baru Cina, financing of RM 5,000 - RM 50,000 on good financial track record.
Moreover, BSN provides cash loans through products such as the Automation and Digitalization Facility (ADF) and Agrofood Facility, allowing SMEs the opportunity to upgrade their machinery or make advance payments to agribusiness.
Islamic Financial Products for Business
BSN’s Islamic-based business loans are much neater, easier on the conscience, and more flexible, such as :
- i-Tawarruq Loan: This product allows the business to acquire assets from the bank, e.g. a shop lot or property, and sell it for profit.
- PKBC i- Murabahah: Much like i- Tawarruq, but catered for the Kampung Baru Cina community with financing based on the Murabahah concept.
- i- ADF: A loan package aimed at business digitalisation also using the Murabahah principle.
- i- Agrofood Facility: Think of a loan package specifically catering to businesses in the food and agriculture industry and structured using a Murabahah approach.
These BSN Islamic Business Loans help entrepreneurs expand their business ventures the more Shariah compliant way!
Eligibility Requirements to apply for a loan
Before applying for a business loan, it’s good to know the requirements and eligibility criteria. Each type of BSN loan comes with certain conditions that must be satisfied by the applicant.
General Requirements for Entrepreneurs
To apply for a BSN business loan, entrepreneurs must usually be:
- Malaysian citizens aged between 21 and 60 years.
- Own a full-time business that has been running for at least 2 years.
- Have a valid business registration certificate from the Companies Commission of Malaysia (SSM).
- Have a net income of RM 2,000 or more per month, with or without a guarantor.
If you need a smaller cash loan, the requirements are not so tough but you will need to show good dealings.
Additional Requirements for Specific Programs
For certain selected programs, additional requirements are attached. For the PKBC Loan and the BSN Mikro-i Credit Prihatin, for instance, you need to get a confirmation letter from the Village Head or Member of Parliament stating that you’re a permanent resident of Kampung Baru Cina.
BSN Mikro-i Credit Prihatin - This loan is targeted for businesses affected by COVID-19 and that have been operating for more than 6 months. This program offers a 0% interest rate and a 6 month repayment moratorium.
Advantages of BSN Loans for Growing a Business
There are many advantages associated with BSN business loans, making them a popular option for Malaysian entrepreneurs. Here are some examples:
- Variety of Financing Options: With products like the TemaNiaga Loan, i-Tawarruq Loan, and i-ADF, business owners can find a loan to suit their needs.
- Competitive interest rates: We have competitive and also affordable interest rates, both for conventional and halal loans, so you will borrow at lower costs than you otherwise will at some other financial entities.
- Easy to Apply: The BSN business loan application process is easy and swift, so awarding yourself a loan and getting it is only a matter of visiting your nearest BSN branch or applying online and uploading the letter of application and the relevant documents like a copy of your MyKad and documents relating to the business.
- Specialized Facilities for Specific Sectors: Loans such as the i-Agrofood Facility support entrepreneurs in the agriculture and food sectors to grow their businesses, contributing to the development of vital sectors of the Malaysian economy.
- Supports Digitalization: The ADF loan provides financing to improve the use of technology among small businesses, helping their businesses be more efficient and competitive.
How to apply for a loan from BSN
How to apply for a BSN business loan?
- Eligibility: Ensure you meet all of the above requirements.
- Documents required:
- Two copies of MyKad.
- Copy of business registration (SSM)
- Copy of bank account book
- Copy of utility bills, such as water or electricity
- Sales records for the last 6 months, if available
- Visit a BSN Branch or Apply Online: You can visit any BSN branch or apply via BSN's official website to facilitate the loan process.
- Wait for the Decision: After submitting your application, BSN will evaluate your eligibility and provide a decision within the specified period.
Risks and the Importance of Careful Financial Planning
Although BSN business loans come with many benefits, it is crucial to plan your finances wisely. Applying for a loan without knowing how the resulting debt will affect your finances can lead to problems down the line. So, be sure to:
- Consider how much you stand to lose if you don’t use the loan wisely: You can afford to lose money slowly, but when you lose credit you may lose it all. It’s much easier to stand in line waiting for money, but it shows that you may have lost your advantage by not considering how much space and time you save and will continue to save with money in your pocket. Simply make up your mind that repayment of the loan won’t strain your business cash flow, and you should have no problems.
- Maintain Good Financial Records: Always keep your financial records neat and organized, as this will be beneficial for loan applications.
FAQ
Are BSN business loans available for all types of businesses?
No, these loans are targeted towards businesses in manufacturing, services, retail, and agriculture, although they do have specific products for certain sectors like the i-Agrofood Facility for agricultural businesses.
Who is eligible for applying for a BSN loan?
Malaysian citizens aged 21 and above, aged 60 and below, full time business, at least 2 years in establishment, net monthly income of RM2,000.00 and above.
Can I apply for a BSN loan for a new business?
Generally, BSN business loans require the business to have been operating for at least 6 months to 2 years, depending on the type of loan.