[ 24-06-2014 ]
250 SMEs Benefit From CGC's Rebate Mechanism
KUALA LUMPUR, June 23 (Bernama) -- A total of 250 customers have benefited from Credit Guarantee Corporation Malaysia Bhd (CGC)'s rebate incentive, some as high as 38 per cent of the guarantee fees payable.
The rebate mechanism, introduced in January 2014, offers a certain percentage reduction on the guarantee fee, and aims to assist small and medium enterprises (SMEs) to lower their financing cost and create awareness on the importance of credit history.
For this purpose, CGC has allocated RM1.7 million that is expected to benefit about 1,800 customers this year, President/Chief Executive Officer Datuk Wan Azhar Wan Ahmad said in a statement today.
In recent years, CGC has forged strategic partnerships with a number of banks on the Portfolio Guarantee and Wholesale Guarantee schemes to facilitate greater financing options and quicker access to the required funds for the SMEs, he said, adding more such partnerships will be explored with other participating financial institutions going forward.
CGC targets to provide RM2.7 billion of financing to about 5,600 SMEs in 2014, Wan Azhar said.
CGC is also actively working with its unit Credit Bureau Malaysia to help SMEs build a creditable credit history and track record to further enhance their credibility and bankability.