THURSDAY 21 SEPTEMBER 2017 11:54 PM

ATOM

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Automotive Workshop Modernisation

Currently, there are few policies or regulations governing the automotive workshops in Malaysia. Without regulations, there are large variations in the quality and service levels provided in this sector.

There is also a perception of a lack of transparency in the services the workshops provide and in the charges they levy on customers. And as there is no structure governing the skill levels of the mechanics or technicians, there is also a variation in skill levels. As such, the ability of this sector to absorb and assimilate the latest technological advancements is limited. With the large number of Malaysian vehicles (13.7 million) and its owners spending an estimated RM10 billion on maintenance every year on their vehicles, there is a significant demand for automotive workshops. Workshops that provide better service quality, coupled with transparency of charges, could encourage higher spending by vehicle owners through, for instance, more regular servicing, purchase of premium service packages and sales of peripherals.

Financing Scope for ATOM Programme

100% owned business (sole proprietorship, partnership or private limited).

Business must be registered with Companies Commission of Malaysia (SSM).

Automotive workshop has been operating for at least one (1) year.

Automotive workshop owner should be 18 years old and above not over 60 years old upon the last payment of loan.

Automotive workshop size is not more than 2500 square feet (two-door shops).

Automotive workshop owner must be run a full time business.

Applicant possess good track record with financial institutions and not declared as bankrupt.

Application must be accompanied with pictures of existing workshop premises.

Business must operates at a fixed premise (shop lot) and separate from the dwelling house.

Borrower (s) is /are allowed to select own contractors and purchase stocks from the existing suppliers with assistance and guidance from the consultant.

Borrowers are not allowed to withdraw from ATOM programme after the participating in this programme.

Terms and Conditions for Loan

Renovation/ Upgrading of business premises

  • Wiring and lighting
  • Modification of ceiling
  • Painting
  • Flooring, walls, glasses and etc

Purchase of machinery or equipment

    Compulsory
  • Point of Sales Terminal (GST ready)
  • Price Tag Signage
  • TUKAR Signboard
    Optional
  • Gondola/Shelves
  • Chiller
  • Freezer
  • Air-Conditioning
  • CCTV
  • Alarm System
  • Fire Distinguishers
  • IT Software tools including cable, network, hardware and other suitable instruments

Working capital

    Purchase of stock

Terms and Conditions for Loan

  • Servicing Bank: Malayan Banking Berhad (Maybank)
  • Amount: Up to RM80,000.00 (inclusive of renovation cost, asset purchase cost, stock purchase cost, legal fees and insurance fees).
  • Tenure: Maximum 15 years or reaching the age of Sixty (60) years.
  • Interest Rate: The rate of interest shall be at three percent (3%) per annum on monthly reducing balance.
  • Guarantor: If applicable Required for all type business constitutions (sole proprietorships, partnerships and private limited companies (guaranteed by owner / partner).
  • Insurance: Borrower(s) is/are compelled to be insured with Takaful Insurance protection with a Takaful Company appointed by KSMB to protect the Borrower and the Borrower’s interest towards the loan.
  • Legal Fees: Stamp fees, solicitor’s fee, security documentation charges and disbursement shall be borne by the Borrower(s) which is included in the facility amount.
  • Ownership of Business: The Borrower(s) shall be the official owner of the business operating in the said premise and shall not close, sell, lease, transfer or enter into any form of transaction to change the ownership of the business to others after participating in this programme.

Documents Required By KSMB

  1. Photocopy of applicant’s identity card.
  2. Certificate of Business or Company registration (full set).
  3. Local Authority License.
  4. Three (3) months of latest bank statements (current or saving account).
  5. Two (2) years of latest financial statements (is any).
  6. Type of business premises (Ownership / Rental) – Valid Tenancy agreement / certificate of property ownership (Sales & Purchase Agreement of business premises) / Grant / Permission letter from owner of premises for rent.
  7. Pictures of existing automotive workshop premise.
  8. One (1) month of latest paid utility bills for the business premises (electricity & water bills).
  9. Latest Form B (Income Tax Statement) (is any).