CIMB Group is offering the NCIA-CIMB Entrepreneur Scheme to eligible micro, small and medium entrepreneurs in the northern region up to RM5 million in rebates on interest and profit from the bank’s SME loans and financing.
The NCES is a partnership between CIMB and the Northern Corridor Implementation Authority with the aim to revitalise the development of close to 1,500 MSMEs, in line with the 12th Malaysia Plan, via the reduction of financing costs through interest/profit subsidies. Eligible SMEs will be provided with a 50 percent rebate on the total interest/profit of their CIMB SME Quick Biz Financing. This includes financing under the Targeted Relief and Recovery Facility (TRRF), a financing facility established by Bank Negara Malaysia to provide relief and support the recovery of SMEs affected by the pandemic. SMEs eligible for the TRRF include those in wholesale and retail trade and business services subsectors, as well as other sectors including food and beverage services, human health and social work, arts, entertainment, and recreation.
The TRRF covers working capital financing with a tenure of up to seven years and financing of up to RM500,000 for each business. Under the NCES, CIMB is the financier of the facility, whilst NCIA’s role is to assist eligible customers to reduce their cost of financing through subsidies. Meanwhile, Credit Guarantee Corporation Malaysia Berhad (CGC) operates as the sole agency that provides guarantee cover of up to 70 percent on the financing provided to the SMEs.
Victor Lee Meng Teck, CEO, Group Commercial Banking, CIMB Group said, “The NCES is timely as we reaffirm our
commitment to the rejuvenation and growth of MSME businesses which are the key drivers in the revival of the Malaysian economy.
Supporting the business growth and creation of job opportunities for recipients under this scheme, CIMB has also rolled out the flagship SME Community Outreach programme for MSMEs within the northern region. This is done via webinars, roadshows, and engagement activities, where the participants are provided with insights into the different types of financing available and guidance on how best to ramp up their digitalisation efforts.
Mohamad Haris Kader Sultan, Chief Executive, NCIA said, “The pandemic has had a profound impact on our communities and affected the livelihoods of many. NCIA has always placed emphasis on the sustainability of the Rakyat in NCER in our short-term and long-term efforts to revitalise the socio-economic development for all.