Hong Leong Bank is offering help to local small and medium enterprise (SMEs) customers to obtain financial aid under PENJANA SME Financing Scheme as the bank has been approved as one of the scheme’s participating banks.
Eligible SMEs can easily apply for working capital loans of up to RM 500,000 at a financing rate of 3.50% p.a, with no collateral required. Through PSF Scheme, it also allowed a term loan of up to 5 years and are only required to pay for the interest during the first six months of the loan.
Hong Leong Bank’s PSF Scheme is open to all local SMEs impacted by the Covid-19
PSF Scheme is open to all SMEs impacted by the Covid-19 pandemic and also the movement control order (MCO) and later conditional movement control order (CMCO) – including emerging SMEs. Requirements needed to apply for this financing loan is SMEs must have been operating for a minimum of 12 months. SMEs that have no credit/borrowing history are welcome to apply too.
According to the group managing director and chief executive officer of Hong Leong Bank, Domenic Fuda. the cash flow remains a serious concern for SMEs even as Malaysia enters a recovery phase and businesses start to reopen. He further added that economic recovery will take some time and SMEs will still need to contend with a low consumer sentiment post-MCO after suffering from a heavy blow to their finances.
Hong Leong to facilitate local SMEs by providing short-term financial buffers
Fida also noted that struggles of new and emerging SMEs, highlighting that only 50% of local SMEs are able to sustain their businesses operation within the first five years of their establishment.
“As a bank with a strong entrepreneurship heritage, we are here to facilitate them in rebooting their businesses with this financing scheme aimed at providing short-term financial buffers as a way to protect the business continuity plans,” he said.
Fuda also hoped that SMEs will be able to use the scheme provided to enhance their resilience and help their businesses grow once the economy has recovered.
“We have seen some SMEs pivoting to digitalisation and for goods and services borne out of this crisis. This drive for innovation and adapting to our new normal is essential for survival as well as future growth.”
The bank will provide financing scheme until 31 March 2021
Penjana SME Financing was announced as part of the PENJANA recovery economic plan announced by the prime minister in the gov’s post-pandemic economic plan. Through this economic plan, it will see the banking sector offering RM 2 billion of funding to affected SMEs. Hong Leong Bank on the other hand, will provide its PSF Scheme until March, 31, 2021 or until the allocation RM 2 billion shared by participating banks is depleted.
For more information regarding Hong Leong’s PSF Scheme and how to apply for your business, you may go to Hong Leong website here. Alternatively, you can reach out to HLB’s SME relationship managers.