A business owner can have a range of reasons why they want to take up a business loan. But one thing is for sure, a business loan can help you to expand your business which in turn, results in better efficiency and profitability.
So, if you’re looking for a business loan to boost your business even more, Alliance Bank might just offer one of the best options in the market. Check out this review of Alliance Bank Digital SME Loan below.
What is Alliance Bank Digital SME Loan?
The Alliance Bank Digital SME Loan is a term business loan that offers small and medium business owners high financing amounts with low interest rates to grow their business further.
What differentiates this loan from other business loans out there in the market is that you are not required to provide any collateral, and you can apply it online wherever and whenever. Considering the pandemic we’re facing, it’s feasible!
Let’s jump into the details of the loan. Depending on how much you want to expand your business, Alliance Bank offers a couple of financing amount options with choices of loan tenures, interest rates, and effective interest rates.
The first option of financing amount is from a minimum RM20,000 up to RM500,000 for a period between 1 year to 7 years maximum. Besides that, the interest rates are flat and are from 5.9% p.a. (T&Cs apply) to 13.78% p.a. On the other hand, the effective interest rates are between 10.42% to 24.53% p.a. You may find the interest rate considerably high, but you have the flexibility of early settlement for this first option!
As for the second option, the financing amount is from RM201,000 to as high as RM1,000,000. But the minimum tenure period is 3 years unlike the former above, and 7 years is the maximum loan tenure. The interest rates are slightly different too which is from BLR + 3.00% p.a. to BLR + 3.50% p.a., while the effective interest rates are from 9.67% to 10.17% p.a. And contrary to the first option above, early settlement is not allowed as a 2-year lock-in period is applied.
For better clarity, kindly refer to the table below:
| Financing amount | From RM20,000 to RM500,000 (See PDS here) | > RM201,000 to RM1,000,000 (See PDS here) |
| Loan tenure | 1 year - 7 years | 3 years - 7 years |
| Interest rate | *5.90% to 13.78% p.a. flat | BLR + 3.00% p.a. to BLR + 3.50% p.a. (Effective June 2023, the BLR is 6.67% p.a.) |
| Effective interest rate | 10.42% to 24.53% p.a. | 9.67% to 10.17% p.a. |
| Early settlement | Yes | No (2-year lock-in period) |
*T&Cs apply. The rate is subject to the Bank’s eligibility criteria.
Disclaimer: The actual amount of financing, tenure, and interest rate to be provided by Alliance Bank is dependent upon credit evaluation by the Bank.
I want to know more about this business loan
If you wish to know more about Alliance Bank Digital SME Loan, we have a FAQ compiled for you. You can take your time to read and get yourself familiar first!
You can even find a few tips to improve your chances of loan approval too. Just click here to find out more.
Is there a lock-in period for this loan?
There is no lock-in period for approved loan amounts below RM500,000.
However, a 2-year lock-in period will apply to the approved loan amounts above RM201,000.
Please refer to the table below for better clarification:
| Up to RM500,000 | Above RM201,000 | |
| Redemption | Allowed | Not allowed |
| Prepayment | Allowed | Not allowed |
| Lock-in period | No lock-in | 2 years |
| Penalty on redemption | Not applicable | Within the first 2 years: 2% of the approved loan amount After 2 years: 1-month notice |
What are the charges that I need to pay to apply for this loan?
Before you submit your application online, there are a couple of charges that you should take note of. They are:
Stamp duty fee: 0.5% of the whole loan amount
Documentation fee: RM500. It will be waived if you apply for a loan of RM100,000 and below
Are there key benefits that I should know about?
Yes, there is! When your application for Alliance Bank Digital SME Loan is approved, you can gain access to Alliance BizSmart Solution where you can benefit from its various business solutions and exclusive privileges.
This benefit can help boost your business by providing great support which includes but is not limited to the following:
- Assist you in acquiring new customers
- Improving the efficiency of your business
- Assist in developing, and upskilling your employees, and much more!
Another benefit that you get to enjoy with your approved loan is the Support Lokal initiative which can help local SME owners reach a broader audience. You can get your hands on support such as digital branding, marketing, and all things e-commerce.
Am I eligible to apply for this business loan?
You’re eligible to apply for Alliance Bank Digital SME Loan if your business is registered in Malaysia with a minimum of 1 year in business.
Not only that but at least one (1) director/shareholder/owner of the business should be between 21 to 60 years old.
All of the directors or shareholders of your company are required to be guarantors.
For loan applications up to RM200,000, the shareholder must be a Malaysian citizen. For loan amounts above RM200,000, at least 51% of shareholding must be by Malaysians.
Note: Other supporting documents may be required, subject to the Bank’s discretion.
How can I apply for an Alliance Bank Digital SME Loan?
If you’re keen to apply for Alliance Digital SME Loan, you can do so by completing the RinggitPlus WhatsApp chatbot journey and submitting your latest 6-months company bank statement (in PDF) within 3 days.
If your loan application is shortlisted, you will receive an invitation to attend a virtual interview with Alliance Bank.
Here is the step-by-step guide to applying online:
1. Complete the RinggitPlus WhatsApp Chatbot journey and submit a bank statement within 3 days
2. Alliance Bank will contact you within 3 working days once the application is shortlisted
3. Attend a virtual interview with the bank
