Maybank and CGC launch hybrid loan facility for SMEs

Photo by Andrea Piacquadio

Maybank and Credit Guarantee Corporation (CGC) have jointly launched SME Clean Loan/ Financing Plus, a hybrid loan facility which combines Overdraft and Term loan to assist SMEs in their cash flow management during these trying times.

The SME Clean Loan/Financing Plus 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.

Maybank and CGC have allocated RM1 billion for this facility, which is available in both Islamic and conventional financing schemes.

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Dato’ John Chong, Maybank’s Group Chief Executive Officer for Community Financial Services said that the Bank is pleased to collaborate with CGC to provide this unique solution to support SMEs particularly during this critical period as business activities are gradually picking up.

“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,” he said.

“In addition, 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 2 years after disbursement, giving ample liquidity to SMEs to meet their short-term cash flow requirement,” he added.

The financing amount offered is RM250,000 to RM1 million for a minimum tenure of three years up to seven years. Maybank and CGC are targeting to disburse the first RM300 million within the first year to benefit as many SMEs as possible. The SME Clean Loan/Financing Plus is available to all Maybank’s customers as well as those new to the Bank.