Alliance Bank, CGC grants up to $240,000 to Malaysian SMEs

The portfolio guarantee agreement has a tranche size of $72.01m.

Alliance Bank Malaysia Berhad and Credit Guarantee Corporation Malaysia Berhad (CGC) have entered into an agreement to grant up to $240,000 loans per account to eligible Malaysian small and medium enterprises (SMEs), according to a joint release.

Through CGC’s Portfolio Guarantee Scheme, eligible e SMEs that lack adequate collateral or credit track record can obtain working capital financing from a minimum $24,000 to $240,000 per SME account, with a financing tenure of up to seven years.

CGC will cover up to 70% of the principal financing amount on a portfolio basis.

This portfolio guarantee agreement has a tranche size of $72.01m, and forms part of the build-up to a $240m portfolio with CGC by 2020. The new tranche will allow Alliance Bank to finance another 600 plus SMEs.

Alliance Bank had reportedly already approved $79.2m in loans from previous tranches for 750 SME businesses who provide employment to almost 13,750 people.

This is the fifth collaboration between Alliance Bank and CGC.To date, CGC has availed over $3.4b worth of financing via its Portfolio Guarantee Scheme which has benefited more than 27,000 SMEs, according to CGC president and CEO Datuk Mohd Zamree Mohd Ishak.

Malaysian-owned business establishments in the country of at least three years are eligible to apply for Alliance Bank-CGC Portfolio Guarantee Scheme.