RHB Banking Group has approved more than Rm 500 million Special Relief Facility (SRF) applications to more than 700 small medium enterprises (SMEs) in order to help alleviate the short-term cash flow difficulties faced by the businesses.
The SRF which is part of Bank Negara Malaysia’s fund for SMEs with an allocation of RM5 billion, has been made available under the RHB SME’s Financial Relief Assistance Programme to assist affect SMEs.
“RHB has approved more than 700 SRF applications from SMEs out of the more than 1,500 applications received so far, with total facility amount in excess of RM500 million, said Khairussaleh Ramli, group managing director, RHB Banking Group.
“The highest number of approvals granted are from the wholesale and retail trade sectors, at 31 percent with total facility amount of RM155 million. This is followed by 16 percent from the manufacturing sector at RM79 million, while the rest are mainly for SMEs from the various services sectors,” he added.
Eligible SMEs can obtain working capital financing of up to RM 1 million at a financing rate of 3.5 percent per annum.
The financing rate is inclusive of any guarantee fee, with a maximum tenure of up to 5.5 years, including the six-month moratorium period.
The facility is available under term financing and has up to 80 percent guarantee coverage by Credit Guarantee Corporation Malaysia Bhd (CGC).
“Currently, almost half of the SRF approvals are those with new financing relationships with RHB. We currently see an encouraging 36 percent of SRF applications being submitted through the online platform and we strongly encourage SMEs to make use of our digital platform particularly during this MCO period,” added Khairussaleh.
In addition to the SRF, the Group will also be supporting affected SMEs by restructuring or rescheduling (R&R) financing installment payments, and by offering moratorium on loans and financing.
This will allow business owners to better manage their cash flow through the period. SME policyholders are also offered installment payment through the Premium Installment Scheme and premium discount through the Premium Relief Scheme.