Low Carbon Transition Facility (LCTF)
Finance Your Business With Clean, Green Energy & Sustainable Solutions
Accelerate your Environment, Social & Governance (ESG) goals with funding designed for climate-aligned operations.
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Whether you’re installing solar panels, switching to energy-efficient machinery, or upgrading to green-certified buildings, we provide the hassle-free one-stop financing solution to make your sustainability ambitions a reality.
Key Features
- High financing limit up to RM 10,000,000 or up to 100% of CAPEX cost
- Flexible financing tenure up to 10 years
- Affordable financing rate up to 5% p.a.
- Hassle-free financing with no collateral required
*Subject to meeting respective scheme guidelines & terms.
Purpose of Financing
- Capital expenditure financing to initiate or facilitate the transition to low carbon and sustainable operations that are within Environmental, Social & Governance scopes:
- Environment: Any activities that avoid or mitigate carbon emissions.
- Social: Any activities that raise awareness on climate resilience
- Governance: Certification(s) of having conducted sustainable mitigation or awareness.
Range of Facilities
- Conventional: Term Loan
- Islamic: Term Financing-i
Eligibility
- Business registered in Malaysia
- Business owned and controlled by Malaysians with at least 51% shareholding
- Business must be an SME as defined by the National Entrepreneur and SME Development Council (NESDC)
General Disclaimer - Subject to the Bank’s credit assessment.
More Information
Alliance Bank Low Carbon Transition Facility (Conventional)
Alliance Bank Low Carbon Transition Facility-i (Islamic)
FAQs about Alliance Bank Low Carbon Transition Facility (LCTF)
The Alliance Bank LCTF provides financing for capital expenditure to support sustainable and green business operations. The hassle-free one-stop solution covers everything from project consultation to green financing solutions.
In addition to the profit/interest rate, Alliance Bank LCTF may include standard charges like stamp duty, similar to other financing facilities.
- You may click ‘Apply Now’ on the same webpage as this FAQ, or
- Visit the Alliance Bank branch nearest to you at https://www.alliancebank.com.my/branch-locator and speak to our Relationship Manager, or
- Email our Business Contact Centre at bbcc@alliancefg.com to enquire about the Alliance Bank LCTF.
Alliance Bank Low Carbon Transition Facility is a non-collateral-based financing facility to finance all sustainable-related CAPEX purposes. In addition, project consultation service is provided by our list of empanelled green partners to complement our financing solutions.
Upon your application for the Alliance Bank LCTF, our designated Relationship Manager will be in touch with you throughout the application process. You may contact them for the status of the application.
The financing range for Alliance Bank LCTF is from RM100,000 up to RM10,000,000, with a margin of finance up to 100%, with no collateral required. This makes it an ideal solution for green project financing.
The financing tenure for the Alliance Bank LCTF is up to 10 years, making it suitable for businesses investing in long-term sustainable projects.
You may consider contacting your designated Relationship Manager to discuss any potential options for restructuring or rescheduling your loan/financing repayment.
The Alliance Bank LCTF is exclusively available for financing capital expenditure related to green machinery, systems, or projects within Malaysia.
The LCTF provides SMEs with green financing to fund capital expenditure for transitioning to low-carbon operations.
It offers collateral-free financing through guarantee schemes by Credit Guarantee Corporation (CGC) and Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP). Additionally, SMEs can enjoy affordable financing rates under Bank Negara Malaysia’s fund, making it easier to adopt low-carbon practices.
It offers collateral-free financing through guarantee schemes by Credit Guarantee Corporation (CGC) and Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP). Additionally, SMEs can enjoy affordable financing rates under Bank Negara Malaysia’s fund, making it easier to adopt low-carbon practices.
The LCTF supports various green projects, including energy efficiency solutions, renewable energy systems, green mobility initiatives, emission control technologies, sustainability audits, certifications, and related training programs. These projects must align with the goal of reducing carbon emissions and promoting sustainable practices.
The LCTF is available to businesses across all industries, particularly those with high energy consumption or carbon emissions.
Industries such as manufacturing, construction, agriculture, and logistics can benefit significantly by adopting low-carbon technologies. By transitioning to low-carbon operations, businesses can reduce costs, mitigate environmental risks, and build a more sustainable future.
Industries such as manufacturing, construction, agriculture, and logistics can benefit significantly by adopting low-carbon technologies. By transitioning to low-carbon operations, businesses can reduce costs, mitigate environmental risks, and build a more sustainable future.
Yes, the LCTF is specifically designed to support SMEs in their journey toward sustainability.
It provides accessible green financing options to help SMEs fund projects such as adopting energy-efficient systems, implementing renewable energy solutions, and upgrading to low-carbon technologies. With features like collateral-free financing and affordable interest rates, the facility empowers SMEs to transition to sustainable operations without financial strain.
It provides accessible green financing options to help SMEs fund projects such as adopting energy-efficient systems, implementing renewable energy solutions, and upgrading to low-carbon technologies. With features like collateral-free financing and affordable interest rates, the facility empowers SMEs to transition to sustainable operations without financial strain.
The LCTF stands out from other green financing options due to its unique focus on supporting businesses in transitioning to low-carbon operations.
Unlike conventional green financing, the LCTF offers up to 100% financing with no collateral required, making it accessible to businesses of all sizes. Additionally, it provides end-to-end support, including project consultation services from empanelled green partners, ensuring businesses can implement sustainable practices effectively.
Unlike conventional green financing, the LCTF offers up to 100% financing with no collateral required, making it accessible to businesses of all sizes. Additionally, it provides end-to-end support, including project consultation services from empanelled green partners, ensuring businesses can implement sustainable practices effectively.
