KUALA LUMPUR: Affin Bank Bhd aims to provide 12,000 small and medium enterprise (SME) loans in 2020.
To this end, SME Banking director, Lim Kee Yeong (pix) said the bank would approve 1,000 applications a month which sums up to 12,000 in a year.
"Currently we're doing about 800 (approvals) a month and next year we're aiming 1,000 a month," he told reporters at the SME BIZCHAT 2019, organised by the bank and its partners including from Amazon Web Services, OpenMinds and WorQ co-working space, here today.
Lim said SMEs would be provided with banking accounts, internet banking and even critical startup insurance.
"To date, we have signed up for more than 12,000 startups for the last two years and this has been continuing to grow and we are averaging signing startups about 800 a month right now," he said.
For financing criteria, Lim said all the bank needed was for the startups to have been in business for six months.
“Six months that's all we ask and there's a transaction in the business. When the application comes in then we look at it, assess it, do a site visit, discuss what they have (as collateral) as we'll look at that angle.
“This is very important so that we'll see there is a commitment, there's some discipline into it, as well as how we can help to get it into the right footing. Naturally, we expect just like any banking facilities, their finance to be conducted in a proper manner which includes among other things personal (finance).”
Lim said Affin Bank would start with a minimum of RM100,000 and go up to RM300,000,“ and as the SMEs grow to a mature phase - pass the second or third year, there would be more discussions with the bank”.
"Minimally we start in the next couple of months with RM25 million to RM50 million, beyond which we continue to add on. Internally we don't cap (the allocated amount for SMEs) so long as there is a need and market.
"We are working collaboratively with a few government agencies and together with them hopefully more can be onboard fast easy and soon," he said.
Lim said the bank was prepared to assist SMEs in the aspect of accounting, taxation, working space guidance and training, and to this end had set up an application, SME Colony for the target group, which is currently available on Android.
“All these are in line with the government's agenda for SMEs to contribute significantly more to gross domestic product (GDP).
“By 2030, the government is aiming for SMEs to achieve 50 per cent contribution to GDP from the current 38 per cent. We're doing our part and certainly, more can be done,” he added. - BERNAMA