SHAH ALAM: Malayan Banking Bhd (Maybank) is targeting an 8% growth in its SME loans this year, from 6.5% in the first half of the year, driven by its attractive financing packages for SMEs, including non-collateral financing.
Maybank head of community financial services for Malaysia Datuk Hamirullah Boorhan (pix) said SME loans accounted for about 23% of Maybank’s total loan portfolio in 2018. The bank has a 22% market share in SME loan financing.
“A big portion of the SMEs are micro and mid-sized SMEs (retail SMEs). For this segment (retail SMEs), we’re targeting to grow by 15% this year. Year-to-date (1H19), we’ve grown 12%,” he told a press conference after launching the Maybank SME Month today.
Hamirullah said the SME segment is a key focus for Maybank and its SME loans have grown healthily with a 23% compound annual growth rate for five years between 2013 and 2018.
“We are confident of meeting our target of providing RM35 billion financing to SME within three years. From 2018 to June 2019, we provided some RM13.4 billion in financing to more than 20,000 SMEs,“ he said, adding that Maybank is targeting to disburse RM10 billion to SMEs in 2019.
He said given that many SMEs have no collaterals for loans, it collaborated with Credit Guarantee Corp and Syarikat Jaminan Pembiayaan Perniagaan Bhd to introduce non-collateral financing. This product is available to all types of business, from micro, small to medium enterprises. Maybank also has partnerships with various institutions such as the East Coast Economic Region Development Council to provide exclusive financing facility to SMEs in this region.
“We offer attractive working capital financing package with no collateral required. For micro entrepreneurs, the financing is from RM20,000 to RM50,000, for SMEs the financing is up to RM1.5 million, with longer repayment tenure up to seven years. Our loan application turnaround time is also the fastest in the industry – five days from application to approval. If you’re an existing client, you can apply for the loan online via Maybank2u Biz and the approval is within 24 hours,” Hamirullah said.
Earlier, the Maybank SME Month kicked off with a Micro Entrepreneur Engagement Workshop to provide budding entrepreneurs the necessary financial and business knowledge to build their businesses.
During the campaign period from Sept 1 to 30, there will be exclusive offers for SME clients, including special financing rates. In addition, a series of capacity and capability building programmes for SMEs covering topics such as financial literacy, business strategy, marketing and branding, as well as digitisation will be held throughout the country.