With the recent spike in COVID-19 cases in Malaysia, SME Bank is offering a special financing of up to RM1 million (Appox. US$230,000) to SMEs affected by the coronavirus under the Special Relief Fund (SRF). This move is helpful in hindsight due to the recent partial lockdown that the nation has implemented that will undoubtedly cause a slowdown in business and productivity.
Entrepreneur Development and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the initiative, in the form of a working capital financing, has been offered since March 6 until December 31 this year.
The SRF financing period is for five years with a competitive profit rate of 3.75 percent per annum and entails no collateral, he said in a statement issued by SME Bank on 16 March 2020.
According to the SME Bank group president and CEO, Aria Putera Ismail, SME Bank has been offering loan repayment deferment to eligible customers since early February; just as the coronavirus appeared to become a global threat.
He said the moratorium would enable the bank’s customers to manage their cash flow while guaranteeing the continuity of their business operations.
Since the launch of the relief measure in February, a total of 95 SME companies have applied for the deferment. These applications are currently being processed for approval.
Earlier, Wan Junaidi told a press conference that the clients of Bank Rakyat, SME Bank and the National Entrepreneur Group Economic Fund affected by Covid-19 can apply to defer repayments of their loans for six months.
Malaysian SMEs that are affected by the outbreak can take advantage of the relief measures presented by SME Bank to ensure more safety nets against the poor economy that results from COVID-19’s spread.