Update BNM provides fund for SMEs affected by floods

KUALA LUMPUR: Bank Negara Malaysia (BNM) is providing an RM500 million Disaster Relief Facility to alleviate the financial burden and assist small and medium enterprises (SMEs) affected by the recent floods in the northern states of Peninsular Malaysia to resume their business.
Under this facility, it said the affected businesses could obtain financing at a concessionary rate from any commercial bank, Islamic banks and development financial institutions regulated by BNM.
"BNM will provide 60% guarantee on the financing obtained through Credit Guarantee Corporation Malaysia Bhd," the central bank said in a statement today.
It said the financing facility, with a maximum of RM500,000 per group of companies, is available to Malaysian SMEs affected in the districts identified as flood disaster areas by the National Disaster Management Agency.
"The fund is to be utilised for repairs or purchase of assets to replace those damaged by the floods, including as working capital.
"The effective financing rate chargeable is up to 2.25% per annum and the loan will have a maximum tenure of five years, with a six-month grace period on financing repayments," BNM said.
It said the facility is available for application from Nov 8, 2017, until May 31, 2018, and businesses needing assistance could approach the participating financial institutions.
The SMEs are advised to contact their financial institutions' customer service centres directly for enquiries, it said.
They may also contact BNM's TELELINK at 1-300-88-5465 for additional information or assistance, it added.
Meanwhile, CIMB Bank Bhd is offering a six-month repayment relief on various loans and financing products for customers and staff affected by floods in Penang and Kedah.
The six-month repayment relief is applicable to, among others, all secured individual and enterprise/commercial banking loans and financing, auto loan/financing, personal financing and credit card interest/late charges, it said in a statement.
"Charges would also be waived for credit/debit card replacement, statement request or replacement of mutilated passbook/bankers' cheques and premature fixed deposit (FD) cancellation for FD's with one-month tenure.
"CIMB would also expedite the processing of insurance claims due to the floods in Penang and Kedah," it added. — Bernama