UOB Signs Pact To Offer Collateral-Free Business Loans For SMEs

United Overseas Bank Malaysia Bhd (UOB Malaysia) and Skim Jaminan Pembiayaan Perniagaan (SJPP) have signed a Memorandum of Understanding (MoU) with the Federation of Hokkien Associations Malaysia to enable small- and medium-sized enterprises (SMEs) to access collateral-free business loans. The MoU affirms UOB Malaysia’s commitment to help SMEs seize new opportunities, meet their working capital needs and progress through different stages of growth.

Under the MoU, UOB Malaysia will extend financial advice and the SJPP-UOB BizMoney solution, a government-guaranteed lending facility, to more than three million SMEs whose owners are affiliated with the Federation. Through the SJPP-UOB BizMoney solution, SMEs can obtain collateral-free loans of up to RM1 million. SJPP will guarantee up to 70 per cent of the loan through its Working Capital Guarantee and Automation Process Guarantee Schemes.

Raymond Chui, Executive Director and Country Head of Business Banking, UOB Malaysia said the tripartite MoU affirmed the Bank’s commitment to support the development and progress of Malaysia’s SMEs and to provide them with flexible financing solutions to help meet their unique needs and challenges.

“As a bank with an established track record in serving Malaysia’s SMEs, we know first-hand that businesses in the early stages of growth can sometimes find it difficult to secure bank lending to meet their additional working capital needs. This is because they may not be in a position to present sufficient collateral to secure loan facilities with banks given they are still in the early stages of growth. Through this tripartite MoU with the Federation of Hokkien Associations Malaysia and SJPP, we can support more SMEs across the country by offering them the flexibility of accessing additional working SMEs across the country by offering them the flexibility of accessing additional working capital without the need for collateral. This will help them progress to the next stage of growth.”

As part of the MoU, UOB Malaysia and SJPP have embarked on a nine-month roadshow to help raise awareness of the Bank’s small business solutions and SJPP’s government–guaranteed lending schemes. The roadshow, which will be conducted across all 14 states in Malaysia, will run until the end of the year.

Tan Sri Lim Hock San, President of the Federation of Hokkien Associations Malaysia, said, “We are pleased to partner UOB Malaysia and commend the commitment they have shown in promoting the financing schemes guaranteed by SJPP. SMEs are an integral part of Malaysia’s economic transformation process and through this partnership we can ensure that our small business members get the right access to financing.”

In recognition of UOB Malaysia’s efforts to support SMEs with unsecured lending facilities, SJPP presented the Bank with a Special Appreciation Award in February 2019. UOB Malaysia was also recognised by SJPP as one of the top five best performing banks in Malaysia for its commitment and active participation in promoting SJPP’s government-guaranteed financing schemes.

To find out more about SJPP-UOB BizMoney, log onto www.uob.com.my or visit the nearest UOB Malaysia branches nationwide.


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