Affin Bank and Credit Guarantee Corp allocate RM50 million to BizDana/- I Seed Funding Program

0

Wednesday, August 24, 2022 7:37 PM MYT

KUALA LUMPUR, August 24 – Affin Bank Bhd has extended its collaboration with Credit Guarantee Corporation Malaysia Bhd (CGC) to launch the third BizDana/-I Start-up funding program with an allocation of RM30 million for the Islamic tranche and RM20 million for the conventional slice.

Previously, BizDana/-I startup was only offered for Islamic finance scheme guarantee, and now, for the first time, Affin Bank and CGC are providing financial support for conventional finance to startups.

Affin Bank Group Chairman and Chief Executive Datuk Wan Razly Wan Abdullah said that since its soft launch last month, the bank has received an overwhelming response from startups.

To date, the latest BizDana/-I Start-up financial scheme has disbursed loans worth around RM9 million to 34 applicants.

“It offers 70% guarantee coverage which could be used as working capital for Malaysian startups to grow and expand their operations without any guarantees,” he said at the press conference after the launch of the SME Sustainable Conference.

Wan Razly said the finance program provides initial working capital to businesses that have been in business for six to 36 months, with a minimum funding amount of RM100,000 to a maximum of RM400,000 and a repayment term of between up to seven years.

“Normally, for banking facilities, you have to wait four years (to apply for financial assistance). So now, we are giving early stage startups the opportunity to get bank facilities with the support of CGC.

“It gives (Affin Bank) more risk so we need to check clients’ documentation and business plans and we will also walk them through the journey, making sure they are financially educated and understand accounting. business, as well as providing assistance to them,” he said.

The portfolio guarantees are an extension of the partnership between Affin Bank and CGC which began with the first BizDana-i tranche valued at RM15 million in October 2020 and continued with the second tranche valued at RM20 million in June. 2021.

Meanwhile, CGC Chairman and CEO Datuk Mohd Zamree Mohd Ishak said the latest financial plan is another important collaboration between Affin Bank and CGC as it remains true to CGC’s commitment to serve Malaysian micro, small and medium enterprises.

“With this partnership, CGC has provided guarantees totaling RM375 million to Affin Bank,” said Mohd Zamree.

Meanwhile, Affin Bank has also officially launched Affin Aspira, a platform that provides a comprehensive all-in-one transaction, financing, protection and advisory solution to support the aspiration of Malaysian startups in Malaysia.

As part of the latest initiative, Affin Aspira offers various products such as PMEssential, a single business application process for applying for multiple products and services; SMEasy Protect, a business continuity insurance plan; SMEmerge for working capital as financial support; and SMEColony, an award-winning mobile app that serves as a one-stop-shop for startups to improve their business knowledge. — Bernama

Share.

About Author

Comments are closed.