KUALA LUMPUR (April 12): Malayan Banking Bhd (Maybank) said its newly-launched SME Digital Financing has approved RM1 billion of financing, benefitting more than 8,200 small and medium enterprises (SMEs), of which 85% or 6,950 are start-ups and microenterprises.
In a statement, the bank said all applications that were eligible for instant decisions received approval and disbursements in less than five minutes.
“Maybank SME Digital Financing was introduced last September at the height of the pandemic with two objectives in mind. First, to provide quick and hassle-free financing to SMEs during this critical period when liquidity is crucial.
“Secondly, we wanted to ensure that financing is accessible to smaller enterprises, such as start-ups and microenterprises, which often face difficulty in securing funding due to their lack of credit record or collateral,” said Maybank group chief executive officer of community financial services Datuk John Chong.
He said the bank was pleased with the positive response to the digital solution, which averaged a few hundred applications per day since its launch.
Of the 6,950 start-ups and microenterprises which received approval for financing from Maybank SME Digital Financing, around 2,000 have only been in operation for two years or less.
Chong said the bank used its in-house data and credit knowledge while leveraging machine learning capabilities to better measure the risks of start-ups, which often lack credit history, and extend financing to them.
SMEs, with turnover below RM25 million, including non-Maybank customers, can apply for the SME Digital Financing online via Maybank2u or Maybank2uBiz without having to visit a branch.
Approved applicants can obtain financing from as low as RM10,000 to a maximum of RM250,000 with a repayment tenure of up to five years.
“SMEs represent the largest business segment in the country and is the backbone of our economy. We hope that the financing provided will be able to help them sustain and recover, keeping many more Malaysians employed in their stead and in turn, helping families get through this challenging time,” Chong said.
As at 12.02pm, Maybank shares were up three sen or 0.36% to RM8.32, giving it a market capitalisation of RM95.19 billion.