Maybank And CGC Launch Malaysia’s First Hybrid Loan Facility For SMEs

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Maybank and Credit Guarantee Corporation (CGC) have come together to introduce SME Clean Loan/Financing Plus, a first-in-the-market hybrid loan facility that combines overdraft and term loans. The new financing facility is targeted at small and medium enterprises (SMEs), meant to assist them in their cash flow management during the challenging post-MCO economy.

The new loan facility consists of a ratio of 30% term loan and 70% overdraft facility, and applicants are not required to provide collaterals as 70% of the total loan is guaranteed by CGC. In terms of financing amount, you’re allowed to apply for a loan of between RM250,000 to RM 1 million with a minimum tenure of three to seven years. It is open to both new and existing Maybank customers.

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“The introduction of SME Clean Loan/Financing Plus 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 readily available overdraft facility helps with their cash flow management,” said Maybank’s group chief executive officer for community financial services, Dato’ John Chong.

Dato’ John further elaborated that unlike other clean overdraft facilities in the market where the limit will normally reduce a month after disbursement, SME Clean Loan/Financing Plus will only start tapering two years after disbursement. As such, this provides ample liquidity to SMEs to meet their short-term cash flow requirement

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The president and chief executive officer of CGC, Datuk Mohd Zamree Mohd Ishak, added that the initiative is one of CGC’s efforts to soften the impact of the Covid-19 pandemic by providing targeted cash flow support to SMEs. “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 said.

In total, Maybank and CGC have allocated RM1 billion for this facility, and it is available as both conventional and Islamic financing schemes. Of the total amount earmarked, the two parties aim to disburse the first RM300 million within the first year to benefit as many SMEs as possible.

To find out more about the SME Clean Loan/Financing Plus facility, you can contact Maybank at 1-300-80-8668 or head on over to Maybank’s website.

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