Banks offers additional RM2 bil SME loans at 3.5% subsidised rate

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KUALA LUMPUR (June 5): Besides loan moratorium, banks are offering an additional RM2 billion under the Penjana SME Financing to assist SMEs adversely impacted by COVID-19.

Prime Minister Tan Sri Muhyiddin announced that the banking sector will offer an additional RM2 billion in order to help sustain small & medium enterprises’ (SMEs) operations at a rate of 3.5%.

The financing facility will be made available in mid-June 2020 with a maximum loan size of RM500,000 per SME.

“For micro enterprises, the government will establish the Penjana Micro Financing fund in collaboration with Bank Simpanan Nasional and TEKUN National for financing of RM400 million, of which RM50 million will be dedicated to women entrepreneurs,” said Muhyiddin.

The new funding programme will be charged at a subsidised interest rate of 3.5%.

These measures that aim to ease businesses’ strained cashflow form part of the RM35 billion  National Economic Regeneration Plan (Penjana).

The regeneration plan involves 40 initiatives, of which RM10 billion is a direct fiscal injection by the Government.