Maybank, CGC target RM300M SME loan facility

PETALING JAYA: Maybank and Credit Guarantee Corp (CGC) target to disburse the first Rm300mil of the newly-launched SME Clean Loan/financing Plus within a year to assist small and medium-sized enterprises (SMES) in their cash flow management during these trying times.

In a joint statement, the companies said the hybrid loan facility, which is the first in the market, consists of a combination of 30% term loan and 70% overdraft facility, with no collateral required as 70% of the total loan is guaranteed by CGC.

The financing amount offered is RM250,000 to Rm1mil for a minimum tenure of three years up to seven years.

It is available to all Maybank customers as well as those new to the bank.

Maybank and CGC have allocated Rm1bil for this facility.

It is available in both Islamic and conventional financing schemes.

Maybank group chief executive officer 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 enables SMES to obtain upfront cash from its term loan while a readily available overdraft facility helps with their cash flow management.

“In addition, unlike other clean overdraft facilities in the market where the limit will normally reduce a month after disbursement, the SME Clean Loan/financing Plus will only start tapering two years after disbursement, giving ample liquidity to SMES to meet their short-term cash flow requirement,” he added.

As part of its commitment to support the country’s SMES, Maybank has approved Rm4.9bil in financing to SMES with an approval rate of 85% as at May 31, 2020.

About 88% of its SME outstanding loans are currently on a six-month moratorium from March to September 2020.

Meanwhile, CGC president/chief executive officer Datuk Mohd Zamree Mohd Ishak said this initiative is one of its efforts to soften the impact of Covid-19.

This will be done by providing targeted cash-flow support to SMES so that they can sustain their operations and revive the economy.

“This facility, supported by CGC’S award-winning Portfolio Guarantee Scheme, has special features that will provide SMES with the ability to better manage their liquidity challenges caused by the current adverse economic conditions,” he added.