Maybank, CGC to provide RM1.5b funds to SMEs
Published on: Saturday, September 03, 2016
Kuala Lumpur: Malayan Banking Bhd (Maybank) Friday inked a portfolio guarantee agreement with Credit Guarantee Corp Malaysia Bhd (CGC), allocating up to RM1.5 billion in financing.Maybank Head of Community Financial Services, Malaysia, Datuk Hamirullah Boorhan said the deal involved the largest ever amount in the country to support the local small and medium enterprises (SMEs) to grow their businesses further."Under the scheme, SMEs can apply for either Islamic or conventional financing facilities from Maybank, from a minimum of RM50,000 up to a maximum of RM1.5 million with a fixed tenure of up to seven years.
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"While the financing is processed by the bank, 70 per cent of the principal financing amount will be guaranteed by the CGC," he said prior to the portfolio guarantee signing ceremony here Friday.The new portfolio guarantee agreement is expected to be able to support an additional 3,000 or more SMEs who need financing without collateral.Maybank Head of SME Banking, Mohd Zaini Aris signed on behalf of the bank while CGC is represented by its Chief Business Officer Leong Weng Choong.The signing was witnessed by Hamirullah and CGC President/Chief Executive Officer Mohd Zamree Mohd Ishak.
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Meanwhile, CGC will, this year, increase its small and medium enterprises (SMEs) outreach by 15 per cent in value and five per cent in numbers.Mohd Zamree said this would be done by availing guarantees and financing of RM4 billion whereby 70 per cent or RM2.8 billion was projected to be achieved via the Portfolio Guarantee (PG) scheme.
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"Our PG scheme, introduced in 2009, has proven to be an innovative financing product. "It is both cost effective and efficient with the turn-around-time being much faster which is two days and the approval rate is almost 100 per cent."Hence, SMEs can be rest assured that they are in good hands in terms of speed and cost effectiveness," he said. He said Maybank was CGC's key partner in SME financing as the bank had availed RM3.2 billion to SMEs since 2013 to July,2016."To date, we have availed over 6,000 guarantees through our PG scheme with Maybank.Stay up-to-date by following Daily Express’s Telegram channel.
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