KUALA LUMPUR, July 8 – Maybank and Credit Guarantee Corporation (CGC) aim to disburse the first 300 million ringgit of the new SME cleaner loan / finance within a year to help small and medium enterprises (SMEs) in their cash flow management in these difficult times.
In a joint statement, the companies said the market-leading hybrid lending facility consists of a combination of 30 percent term loan and 70 percent overdraft facility, with no collateral required at up to 70 percent of the total loan amount. is guaranteed by CGC.
The amount of funding offered is RM250,000 to RM1 million for a minimum term of three to seven years, and it is available to all Maybank customers as well as new customers of the bank.
Maybank and CGC have allocated RM 1 billion for this facility, which is available in both Islamic and conventional funding schemes.
Maybank Group Managing Director for Community Financial Services Datuk John Chong said the introduction of the facility is timely given that many SMEs are currently facing liquidity issues after months of disruption to their business.
“The ingenuity of this solution lies in its flexibility which allows SMEs to obtain liquidity upstream of its term loan while an available overdraft facility facilitates the management of their cash flow.
“Also, unlike other clean overdraft facilities in the market where the limit will normally be reduced one month after disbursement, the SME cleaner loan / finance will only start to decline two years after disbursement. sufficient liquidity for SMEs to meet their short-term needs. need cash, ”he added.
As part of its commitment to support SMEs in the country, Maybank approved RM 4.9 billion in financing for SMEs with an 85% approval rate as of May 31, 2020.
Around 88% of its outstanding SME loans are currently subject to a six-month moratorium from March to September 2020.
Meanwhile, CGC CEO Datuk Mohd Zamree Mohd Ishak said the move is one of his efforts to mitigate the impact of Covid-19 by providing targeted cash flow support to SMEs so that they can support their operations and revive the economy.
“This facility, backed by CGC’s award-winning portfolio guarantee program, has special features that will allow SMEs to better manage their liquidity problems caused by the current adverse economic conditions,” he added. – Bernama