KUALA LUMPUR: CIMB Group Holdings Bhd, via CIMB Bank Bhd and CIMB Islamic Bank Bhd, have entered into a partnership with Credit Guarantee Corp Malaysia Bhd (CGC) to provide SMEs access to RM2 billion in financing through CGC’s Portfolio Guarantee-i scheme.
Under the scheme, CIMB Bank and CIMB Islamic would disburse up to the RM2 billion through the Portfolio Guarentee-i, an islamic working capital financing where 70% of the loan amount is guaranteed by CGC without collateral. The financing limit for this scheme is RM1 million per customer with a maximum tenure of seven years.
CIMB group commercial banking CEO Victor Lee Meng Teck said it is pleased to partner with CGC in nation building as SMEs are projected to contribute 41% to Malaysia’s GDP by 2020.
“In line with CIMB’s mid-term growth plan, our refocused proposition includes an investment of more than RM300 million in the next five years to strengthen our end-to-end tech-driven SME banking solutions to help transform our customers’ business.”
CGC president and CEO Datuk Mohd Zamree Mohd Ishak said over the last six years, both CIMB and CGC have successfully launched 13 Portfolio Guarantee Schemes totalling RM1.4 billion, benefiting over 2,000 SMEs.
Recently, the bank announced its commitment to disburse at least RM15 billion in the next two years to 100,000 SMEs in the country, especially for financing below RM500,000. In tandem with the government’s push for an entrepreneur-friendly enabling environment to boost Malaysia’s economy.
From 2016 to 2018, the bank has disbursed RM17.8 billion to support the growth of 17,000 Malaysian SMEs by providing working capital, asset financing and trade finance.
Source: The Sun Daily