Hong Leong Bank Berhad (‘HLB’ or ‘the Bank’) is assisting its small and medium enterprises customers (SMEs) with financial aid to sustain their business operations affected by the Covid-19 outbreak through Bank Negara Malaysia’s (BNM) Special Relief Facility (SRF).
Through the SRF, with no collateral requirement, eligible SMEs stand to receive financing of up to RM1 million and for a term loan up to 5.5 years with a financing rate capped at 3.75 percent per annum.
This financing facility is inclusive of financing to related companies that have common shareholder(s) with an 80 percent guarantee by the Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
According to Domenic Fuda, Group Managing Director and Chief Executive Officer of HLB, SMEs are especially vulnerable in terms of managing their cash flow in situations of economic and business disruptions.
“SMEs are the main drivers of our economy and we are here to help and resolute in facilitating the ease the burden that our SME customers are presently facing.”
Fuda said that along with the latest OPR reduction and the Bank’s Customer Financial Relief Plan, BNM’s SRF will provide much needed relief for SMEs currently experiencing cash flow issues.
“It will give them an opportunity to shore up resources, so that they can bounce back faster as soon as the situation improves.”
Previously, the Bank has put in place a Customer Financial Relief Plan for its SMEs and individual customers options to restructure or reschedule loans and financing to address short-term cash-flow situation.