Financing Terms

–	Funding Societies Islamic Micro Financing/-i
Description	A shariah compliant micro term facility product under the principles of Commodity Murabahah (via Tawarruq)
Purpose	Working capital
Tenor	Up to 18 months
Facility Amount	RM3,000 – RM200,000
Security	Personal guarantee
Profit Rate	0.8% – 1.5% per month
Drawdown Fee	5% of facility amount charged upon successful disbursements
Guarantee Fee	5% of financing amount charged upon successful disbursements, it is a fee payable to FS Capital Sdn Bhd (Company No. 201631787R) which is chargeable to the Issuer for the Guaranteed Investment Note product. The Guarantee Fee shall be collected by Modalku Ventures Sdn Bhd for an on behalf of FS Capital Sdn Bhd upon disbursement.
Retention Sum	0% of Facility Amount (deducted upon disbursement). Amount to be refunded upon successful payment of financing obligations.
Prepayment Fee	Not applicable
Penalty Fee	Not applicable
Late Payment Charges	1.00% per annum if paid within 7 days from the Due Date, 10.00% per annum if paid after 7 days from the Due Date charged on the unpaid principal and profit

Eligibility for Financing

Shareholding	Min 30% Malaysian registered company
Entity Type	Sole proprietorships, partnerships, private limited companies (non-subsidiary of listed companies) and unlisted public companies
Duration of Operation	Min 6 months
Annual Revenue	Min RM60,000 per year
Legal Action	No pending/outstanding legal action
AKPK Status	No ongoing AKPK status
Bankruptcy/Litigation	Bankruptcy settled for more than 24 months; and Litigation settled for more than 12 months

Documentation Requirements

NRIC (Malaysian) / Passport (Non-Malaysian) of all Directors and Personal Guarantors	Yes
Bank statements (latest 6 months) – capturing at least 80% of sales	Yes
2 years income tax assessment (personal tax)	Optional

Financing Tenure (Month)		18
Interest Rate		0.8% Per Month	1% Per Month	1.5% Per Month
Financing Amount (RM)	50,000	3,496.56	3,605.56	3,880.56
	100,000	6,991.11	7,211.11	7,761.11
	150,000	10,486.67	10,816.67	11,641.67
	200,000	13,982.22	14,422.22	15,522.22

Installment per month = Facility Amount + [Facility Amount x Interest Rate p.m (%) x Financing Tenure (month)] / Financing Tenure Note: 5% DF and 5% GF is charged upon every successful disbursement

Frequently Asked Questions

What is Islamic Micro Financing/-i?

Funding Societies Islamic Micro Financing/-i is a business financing product that offers micro credit opportunities to SMEs. As a business owner, you can utilise the opportunities to maintain cash flow and enhance your business day-to-day. We offer both Micro Financing (conventional) and Islamic Micro Financing product based on the business activities and needs of the SMEs.

How does Islamic Micro Financing/-i work?

With Funding Societies Islamic Micro Financing/-i, you can apply for a financing amount of up to RM200,000 subject to an interest rate (for conventional) / profit rate (for Islamic) of 0.8% – 1.5% per month and a credit period of up to 18 months. Once you have accepted our offer, we will credit the approved financing amount to you, with applicable fees deducted upfront from the amount.

How long is the credit period?

Depending on your needs and the nature of your financing, you could apply for a credit period/tenure of 6, 9, 12, or 18 months.

How do I apply?

If this is your first time with us, here is a run-through on the application process:
Step 1: Complete the Application form on our page
Step 2: Submit the documents required for the application
    ● Copy of all Director(s) NRIC/Passport
    ● Latest 6-months Bank Statement
    ● Latest 2 years personal Income Tax Assessment (Optional)
Step 3: Check your email for updates on your financing application
Step 4: Accept the approved financing offer from us (if you’re agreeable to the terms) We will credit the funds into your designated business bank account upon successful funding exercise and your repayment cycle shall begin the following month.

Are there any fees and charges?

Just like any other financing products, the following fees/charges will be applicable:
Islamic Micro Financing/-i
    ● Drawdown Fee: 5% of the approved financing amount, deducted upon disbursement.
    ● Guarantee Fee: 5% of the approved financing amount, deducted upon disbursement.
Micro Financing (Conventional)
    ● Utilization Fee: 5% of the approved financing amount, deducted upon disbursement.
    ● Guarantee Fee: 5% of the approved financing amount, deducted upon disbursement.

What if I can’t make my payments on time?

Islamic Micro Financing/-i
Late Payment Charges which consist of Compensation (Ta’widh) and Penalty (Gharamah) will be charged subject to the following conditions:
    ● For default payment before maturity date: Compensation (Ta’widh) may be imposed at the rate of 1% p.a. on the outstanding amount and shall not be compounded.
    ● For default payment after maturity date: Compensation (Ta’widh) may be imposed at the rate of 1% p.a. on the outstanding balance (outstanding principal and accrued profit). Funding Societies may charge both Compensation (Ta’widh) and Penalty (Gharamah) as Late Payment Charges at a maximum rate of 10% p.a.
Micro Financing (Conventional)
If you are late in making your repayments, the following fees/charges will be imposed:
    ● Late Penalty Fee: RM200 per repayment cycle
    ● Late Interest Fee: 0.1% per day (non-compounded) on the amount in arrears

Can I make an early settlement?

Early repayments are always encouraged, as SMEs are able to save more on interest and profit shared.
For Micro Financing (Conventional), the early repayments are subjected to a 2% early repayment fee on the remaining principal amount to partially compensate our investors on the loss of their residual interest.

What criteria can I use to determine whether my business is eligible for Islamic Micro Financing/-i?

If your core business involves the trading of:
1. alcohol;
2. gambling;
3. pornography;
4. tobacco and dangerous drugs;
5. entertainment-related companies – such as karaoke lounges serving alcohol, film production houses producing mainly illicit movies, cinemas that typically screen entertainment-related movies;
6. pork and its by-products;
7. food items that are prohibited under the teaching of Islam such as frogs, snakes, crocodiles;
8. shariah non-compliant massage parlours that allow treatment from the opposite gender;
9. prostitution;
10. interest-based lending, including credit sales with interest charges;
11. conventional insurance and unit trust agencies; and/or
12. production and distribution of idols, statues, and materials and places for worshipping other than Allah

You may not be eligible for Islamic Micro Financing/-i

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Funding Societies Islamic Micro Financing/-i

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