Entrepreneur

SMEs Looking For Financing Can Now Apply Under Maybank's New RM2 Billion Scheme

  • Maybank and CGC are launching the CGC PG scheme to provide up to RM2 billion of financing to small and medium sized enterprises (SMEs).
  • Maybank also offers non-financial services for SMEs including advisory services, training roadshows and capacity building programmes such as the ‘Building Capacity & Capability for SMEs’ programme.

Some industry players believe that the local tech scene is on the cusp of rapid expansion. Based on the recent activity of some local banks, they’re in agreement.

Just in the last month, local banks such as RHB Banking Group, Hong Leong Bank and United Overseas Bank have all announced programmes to help SMEs in the nation to operate more efficiently and effectively, be it financially or non-financially, or both.

Maybank has now joined the chorus with the announcement of a SME loan offering of their own to the tune of RM2 billion.

Entering into a strategic partnership with Credit Guarantee Corporation Malaysia Berhad (CGC), they plan to provide up to RM2 billion of financing to small & medium sized enterprises (SMEs) via CGC’s portfolio guarantee (PG) scheme.

According to the press release, this is the largest ever amount under the CGC PG scheme to support local SMEs in growing their businesses further.

Dictionary Time: A portfolio guarantee would enable SMEs not only to enjoy a new avenue to gain access to financing but also improved turnaround time in terms of approval and disbursement of loans.

SMEs can choose either Islamic or Conventional financing facilities from Maybank, from a minimum of RM50,000 up to a maximum of RM1.5 million and for a fixed term of up to seven years. Under this scheme, 70% of the principal financing amount will be guaranteed by CGC.

Speaking at the event, Datuk Hamirullah, Maybank Head of Community Financial Services Malaysia, said the RM2 billion PG allocation is in addition to the RM1.26 billion approved by Maybank in 2014, followed by RM1.1 billion in 2015 and RM1.5 billion in 2016, which was driven by the strong demand from the SME industry.

He stated that the reason why Maybank has decided to extended their collaboration with CGC was due to their commitment to support the growth of the SME sector in Malaysia which is an integral contributor to the Malaysian economy.

“As at end 2017, Maybank became the largest PG partner in the SME market with a total disbursement of close to RM3.78 billion and benefitting more than 8,000 customers nationwide.

“Currently, in the first quarter of 2018, I am happy to say that we have surpassed the RM4 billion PG disbursement mark and we are confident that the numbers will increase.”

Hamirullah further said that Maybank also offers other non-financing services to ensure SME players remain competitive and continuously appraised of growth opportunities.

Among the non-financial services provided by Maybank include: advisory services, training roadshows, and the Building Capacity & Capability programme.

“This programme is part of our efforts to ensure SMEs are able to leverage opportunities within the rapidly changing business environment.”

He added that the programme has reached out to more than 3,500 participants since its launch in 2014. the programme will continue this year in 8 different locations nationwide between April and November.

  • You can find out more about the schemes offered on CGC’s website. For those interested in joining their Build Capacity & Capability programme, register through their website here.

Image Feature Credit: Maybank

 

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