An Unbiased Review: Alliance Bank Digital SME Business Loan
If you’re looking for a financing solution to help take your business to the next level, then Alliance Bank’s Digital SME Business Loan is one of the better options for you to consider.
This financing solution offered by Alliance Bank offers a business loan of up to RM500,000, requires no collateral, and only needs you to submit simple business documentation during the application process.
It also comes with business solutions designed to help your business grow, which means that you will also be receiving help with your business if you apply for this business loan.
However, while this business loan offers competitive interest rates, it’s not the lowest in the market.
Key features of Alliance Bank Digital SME Business Loan
|Loan amount||RM 20,000 to RM200,000||RM200,000 to RM500,000|
|Interest Rate||5.90% p.a. to 13.78 p.a. (flat rate)||7.00% p.a to 13.00% p.a. (flat rate)|
|Effective Interest Rate||10.91% p.a to 24.05% p.a||12.50% p.a to 23.26% p.a|
|Loan tenure||1-5 years||2-5 years|
For the Alliance Bank Digital SME Business Loan, the interest rates you will need to pay depends on the financing amount. Let’s have a look at the rates available for this financing solution.
For loans from RM20,000 to RM200,000, this business loan offers very competitive rates, starting at 5.90% p.a to 13.78% p.a (flat rate). These are not the lowest you can get, but are still very competitive with other offerings in the market.
However, for loans amounting to RM200,000 to RM500,000, the interest rates start from 7.00% p.a to 13.00% p.a flat. However do note that other financial institutions offer lower interest rates, if that’s your main chief concern.
For example, you can get a business loan with rates as low as 4.90% p.a with the Maybank SME Clean loan. However, where Alliance Bank Digital SME Business Loan excels is in the business solutions you get when you qualify for financing from this loan scheme.
With the Alliance Bank Digital SME Business Loan, once your financing gets approved, you will not only receive the funds you applied for, you will be getting further support for your business in the form of advice and solutions you need to help your business grow further.
This is in contrast to other SME loans, which only provides you with the financing amount and nothing more.
Alliance Bank Digital SME Business Loan also allows you to do all of the application process online. Although a lot of other banks offer this as well, some financial institutions require potential customers to come to their physical office branch for loans exceeding a certain sum.
For example, the Maybank SME Clean loan needs potential customers to come to their physical branch offices if you want to apply for loans of more than RM250,000.
For this loan application process, everything can be done online, with no branch visits required. The bank’s website outlines the online application in just 3 steps: –
1. Submitting the e-form along with a copy of your identity card (NRIC) and a snapshot of yourself
2. Submit your company bank statement
3. Attend an online interview (once your application is shortlisted)
Enjoy a flat rate of as low as 5.90% p.aGet extra support to help take your business to the next level with Alliance Bank now!
Alliance Bank also offers support for your business once your financing application is approved, with their BizSmart Solution and Support Lokal programmes.
Let’s have a look at what these two programmes offer:
Alliance Bank’s Bizsmart solution is a programme designed to help SMEs to grow their business by helping them reach new customers using smart digital solutions, improve operational efficiency by streamlining and simplifying business operations, and also upskilling the business team by helping them recruit and train new talents.
Support Lokal initiative
The Support Lokal initiative is aimed at helping local SMEs reach more customers online, by providing them with easier entries to e-commerce platforms, digital branding and marketing support, as well as funding and advice to help SMEs grow.
With these two bonus support for your business, you’re not only getting a financing solution, but you’re also receiving further support to help your business grow.
The Alliance Bank Digital SME business loan does not come with any processing fees, and the documentation fees are waived for loans amounts from RM20,000 to RM100,000. For loans over RM100,000, you will still be charged for the documentation fees, which equals to a RM500 flat fee.
However, you are still required to pay the stamp duty, which amounts to 0.5% of your financing amount.
This financing solution also requires you to pay 1% interest on late payment charges, which is typical for any other financing solutions out there.
What we like
- Easy application process. The application process can be completed entirely online, which takes away the need of going to a physical branch of Alliance Bank completely
- Bonus support for business. Rather than just providing their customers with a financing solution, Alliance Bank Digital SME business loan provides their customers with business solutions as well to help them grow.
- No collateral. The Alliance Bank Digital SME business loan requires no collateral, no matter how big the financing amount being applied.
Things to consider
- Does not offer the lowest interest rate. At 5.90% p.a to 13.78p.a, although competitive, this financing solution does not offer the lowest rates available in the market, so if your chief concern is the interest rate, you might want to consider other financing options.
- Limited tenure. The Alliance Bank Digital SME business loan only offers a tenure of one to five years, which is not that flexible as other options in the market that allow a tenure of up to ten years.
How to qualify for Alliance Bank Digital SME business loan
To qualify for this loan, your business must meet the following requirements;
- Minimum RM50,000 annual business revenue.
- Minimum one year* in business operation.
- Business entity is registered in Malaysia.
- Company Director/Shareholder to apply.
- Minimum 51% shareholding by Malaysians.
- Latest six months company bank statements (in PDF).
- All company shareholders/directors are required to be loan guarantors.
The documents you must provide during the application process is;
- A front and back copy of your national identity card (IC).
- A selfie.
- Latest six months company bank statements (in PDF).
Alliance Bank Digital SME business loan is a great financing solution, especially for business owners who are looking for financing to help them expand their business further.
The cherry on top is the Bizsmart service that comes with this financing solution which will help you get all the necessary advice you need to grow your business.
However, if you’re looking for a financing solution that offers more flexibility in terms of tenure term and interest rates, you might be better off with alternatives from other banks.
If your business doesn’t meet the requirements for the Alliance Bank Digital SME business loan, why not try out our business loan calculator to find the perfect business loan for you.