Low Carbon Transition Facility (LCTF) Low Carbon Transition Facility (LCTF) is established to help SMEs embrace sustainable and low carbon practices in their business operations. This includes to increase usage of sustainable raw materials and renewable energy, and to also improve energy efficiency of buildings or machinery.
This Facility is in line with the Government’s target for Malaysia to be a net-zero emission economy by 2050. Note: The financing shall not be used for the following activities:
• Purchase of shares;
• Refinancing of existing credit/financing facilities;
• Purchase of land/real estate investment;
• Property development;
• Investment by investment holding companies;
• Activities where stock in trade is money (including credit, leasing, factoring and insurance businesses); and
• Gambling, alcohol, tobacco or other similar activities/products.

Term Loan is granted for a fixed term or period and calculated on a fixed rate basis. It is normally granted to finance the capital expenditure and/or for working capital purposes with repayment by monthly instalments for a period of time.