Introduction
Young Entrepreneur Fund (YEF) is a special fund allocated by the Government as part of its continuous strategy of acculturation and creation of new entrepreneurs among Malaysian youth.The purpose of this fund is to provide alternative access to the young entrepreneurs in obtaining financing to start their new business as well as for the needs of their existing business.
Financing Concept
Based on Shariah financing concept (Bai’ Inah, Bai’ Bithaman Ajil, Ijarah, Ijarah Thummabai’, and Bai’ Istisna)Purpose and Margin of Financing
Working Capital Requirement
Types of Working Capital | Margin of Financing |
| Working Capital – purchases of raw materials, stocks, overhead cost, advertising & promotion etc | Up to 100% |
- Purchase of Assets for Business Operations
| Types of Asset | Margin of Financing |
| Loose tools, machinery and equipment, office equipment etc | |
| Up to 95% |
| Up to 70% |
Note:
- Refinancing is not allowed
- Reimbursement is allowed for expenses not more than 3 months old at the point of financing approval
Financing limit
- Minimum : RM20,000
- Maxiimum: RM100,000
Tenure
- Up to 7 years including maximum 1 year grace period
Net Profit Rate
- 5% per annum (Annuity Monthly Rest)
Eligibility
- Malaysian youth between 18 to 30 years of age, owning a business
- The business is registered with Suruhanjaya Syarikat Malaysia (SSM) under a sole-proprietorship or partnership firm, or a Sdn Bhd company
- For a partnership firm or a Sdn Bhd Company, the youth applicant must hold majority shares of more than 51% AND is the key decision maker
- Minimum possession of entrepreneurship / vocational certificate
- Those without entrepreneurship / vocational certificate could be considered through the acquisition of entrepreneurship training from Centre for Entrepreneur Development and Research (CEDAR), SME Bank
- Start-up companies/firms, defined as in operations less than 1 year, may be considered
Security and Collateral
Security & Collateral | Company | Firms |
| Security Documents | Joint and Several Guarantee | Facility Agreement |
| Facility Agreement | ||
| Cash Collateral | Minimum 10% Cash Collateral ( 1 : 10 ) | |
