KUALA LUMPUR: Hong Leong Bank has approved RM1.3bil of facilities under the Bank Negara Malaysia Special Relief Facility (SRF) for over 1,600 small and medium enterprises (SMEs) up to April 30.
To help SMEs facing cashflow challenges, it had enhanced and simplified the application and approval process for SME loans, according to a statement on Friday.
Hong Leong Bank said the move was to fast track the SRF for SMEs spanning across sectors ranging from wholesale and retail trade, manufacturing, construction to transport, storage and communication.
Hong Leong Bank pointed out the current Covid-19 had adversely affected the economic health of many businesses, especially SMEs.
This has led to cash flow being the biggest challenge as SMEs readjust their operations during the MCO period to ensure that they could continue to meet their financial obligations, including retaining staff on their payroll.
Head of SME banking at Hong Leong Bank Terrence Teoh said providing flexibility on the application process has made a significant difference in easing the burden and anxiety of customers.
“We made it simpler and seamless for the customers, where they are able to apply via email and complete the process through digital consent acceptance.
“This not only played closely to our digital at the core strategy, but just as importantly, allowed us to help clients at a critical time during the Movement Control Order (MCO), where physical restrictions inhibit the traditional way of doing things.”
Hong Leong Bank group managing director and CEO Domenic Fuda said SMEs accounted for 98.5% of all businesses in Malaysia been hit badly during the MCO.
“As a bank with a strong entrepreneurship heritage we understand that cash flow is their biggest challenge, and they presently face financial pressures to keep their businesses afloat and protect the livelihood of their owners and employees.
“We have been engaging with our customers throughout the MCO period to help where we can, including extending credit where appropriate and payment deferment where necessary to assist with their short-term cash flow management.
“We are also helping SMEs digitising their banking so as they are able to operate under restricted movement and hence quickly bounce back as soon as the situation improves,” Fuda said.
The bank is also extending assistance to individuals and SME customers in the industry wide loan deferment programme which was introduced on April 1, for six months.
Source : https://www.thestar.com.my/business/business-news/2020/05/08/hong-leong-bank-approves-rm13b-loans-to-smes-under-bank-negaras-srf#cxrecs_s