OCBC Bank (Malaysia) Berhad is collaborating with Credit Guarantee Corporation Malaysia Berhad to provide up to RM100 million this year in Portfolio Guarantee (PG), available in both conventional and Islamic banking tranches. With this, the bank has surpassed the RM1 billion mark in PG schemes with CGC.
The current PG tranches involve RM50 million in conventional and a further RM50 million in Islamic banking facilities. The latter will be made available through its Islamic banking subsidiary and, for the first time, the tranches will be made available to SMEs digitally via its digital platforms.
The PG schemes are partially secured by CGC at 70% of the facility amount, with a tenure of up to 5 years. The financing amount made available to MSMEs is up to RM600,000 with no collateral required.
CGC President & Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said in his speech, “With this groundbreaking accomplishment, the timing cannot be more perfect than now as MSMEs continue to recover from the aftermath of the pandemic. This PG tranche involving RM50 million in conventional and the other RM50 million in Islamic facilities will certainly benefit OCBC Bank and OCBC Al-Amin MSME customers.”
According to OCBC Bank Chief Executive Officer, Mr Tan Chor Sen, the Bank is constantly on the lookout for ways to provide greater convenience to MSMEs for meeting their working capital needs.