CREDIT Guarantee Corp Malaysia Bhd (CGC) and OCBC Malaysia are collaborating once again for its Wholesale Guarantee (WG) scheme.
The scheme will offer RM250 million in unsecured financing to small and medium enterprises (SMEs) over the next 12 months.
The latest trench will bring the total disbursed amount to RM1.64 billion by the middle of next year.
OCBC Malaysia comprises OCBC Bank (M) Bhd (OCBC Bank) and its wholly owned subsidiary OCBC Al-Amin Bank Bhd (OCBC Al-Amin).
The first tranche was offered in April 2014 via OCBC Al-Amin.
Prior to this, OCBC Malaysia disbursed RM1.39 billion in unsecured financing through the scheme in partnership with CGC particularly in industries ranging from retail and wholesale to manufacturing.
From the fresh RM250 million tranche, RM200 million will be from OCBC Bank and RM50 million from OCBC Al-Amin, which is expected to be distributed to 1,000 SME accounts.
“The WG scheme provides capital relief to OCBC and OCBC Al-Amin in accordance with Basel II, and at the same time provides additional security on their micro, small and medium enterprises (MSMEs) exposure.
This, in turn will enable OCBC and OCBC Al-Amin to reach out to more MSMEs,” CGC president and CEO Datuk Mohd Zamree Mohd Ishak said in a statement yesterday.
OCBC Malaysia, through OCBC Al-Amin, initially became a prime mover of the initiative to make unsecured financing available when it introduced OCBC Al-Amin Business Cash-i in 2014.
OCBC Bank CEO Datuk Ong Eng Bin said in the same statement that the bank is keen to develop new tranches of WG, in line with the increasing call from SMEs for unsecured financing options.
Those applying for the facility can expect approval within a week. Processing fees, CGC guarantees, financial statements or statutory documents are not required when applying.
In addition, there are no prepayment penalties or lock-in terms.