KUALA LUMPUR: AmBank Group and Credit Guarantee Corporation Malaysia Bhd (CGC) have extended their financing facilities by an additional RM400 million under the SME (small and medium enterprise) Portfolio Guarantee Scheme, to benefit about 800 local micro, small & medium enterprises (MSME).
The RM400 million additional financing will be executed under AmBank’s Retail SME channel to support MSME, especially those in e-commerce, a segment with vast potential for growth.
Under the scheme, eligible SME can apply for financing facilities of up to RM1 million with repayment tenure of up to seven years, where 70% of the principal financing amount will be guaranteed by CGC and approved within one day.
The new tranche continues to finance e-commerce segment with a loan amount from RM20,000 to RM200,000 which applies to firms operating more than two years.
Existing AmBank merchant clients with certain eligibility are qualified to apply for AmBank Pay-As-You-Grow Unsecured Term Loan, which bundles with Merchant Point-of-Sales and Deposit Account.
AmBank Group CEO Datuk Sulaiman Mohd Tahir said that this extension is part of an ongoing collaboration between the two organisations aimed at developing and financing the local SME segment.
“Since the launch in 2016, the Retail SME Portfolio Guarantee Scheme has reached a total of RM3 billion, benefiting over 4,000 SME businesses in the nation. In total group wide, we have provided about RM4.5 billion worth of financing in collaboration with CGC, reaching out to more than 5,000 SME,” he said during the media conference today.
This partnership continues to provide financing access to SME who require financing without the need to put in collateral as the CGC guarantee fee is borne by AmBank.
CGC president & CEO Datuk Mohd Zamree Mohd Ishak reiterated that it remains steadfast in its financial inclusion agenda and commitment to assisting MSME to gain access to financing.
“Over the last seven years, the CGC-AmBank Retail SME partnership has strengthened, delivering 17 Portfolio Guarantees tranches worth RM3 billion and benefiting over 4,000 MSME.
“These additional RM400 million financing facilities offering working capital are aimed to support MSME especially those in e-commerce, a segment with vast potential for growth,” he said.
