STANDARD CHARTERED SAADIQ & CGC ROLL OUT
FIRST ISLAMIC PORTFOLIO GUARANTEE SCHEME FOR SMEs
KUALA LUMPUR, 21 November 2013
– Standard Chartered Saadiq Berhad (Saadiq) today sealed an agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to provide financing to small and medium enterprises (SMEs) with the launch of the country's first Islamic Portfolio Guarantee (PG) scheme.
Saadiq, a wholly-owned Islamic banking subsidiary of Standard Chartered Bank Malaysia is the first Islamic bank to enter into such agreement with CGC, as it aims to provide a comprehensive range of Syariah compliant solutions and help businesses grow.
The Islamic PG scheme is a term financing facility that offers financing from RM100,000 up to RM800,000 with flexible financing tenure of between 12 and 84 months. With RM200 million to be offered under the new agreement, about 400 SMEs are expected to benefit from the scheme within the next one year.
“We believe that the Islamic-based PG will provide various benefits to the industry as it provides a viable alternative to those SMEs that prefer Syariah-compliant banking to obtain greater access to financing. It will certainly contribute to further growth and development of Islamic financing in Malaysia,” said CGC's Managing Director Datuk Wan Azhar Wan Ahmad.
“We remain committed in addressing the unique banking needs of SMEs especially those that are marginal but potentially viable by providing innovative financial solutions and alternate avenues to gain access to financing of their choice,” added Datuk Wan Azhar.
“SME is one of the fastest growing segments in Islamic finance. For Saadiq, as we focus on offering a comprehensive product suite, the roll out of this Islamic PG scheme for SMEs which is the country's first demonstrates our commitment to this vital and growing segment which is 2 the backbone of many economies worldwide,” said Wasim Saifi, CEO, Standard Chartered Saadiq & Global Head, Islamic Consumer Banking, Standard Chartered Bank.
The agreement was signed by CGC's Head of Business Development Ms. Kristine Ng Wei Miem and Mr. Wasim Saifi, CEO, Standard Chartered Saadiq & Global Head, Islamic Consumer Banking, Standard Chartered Bank and witnessed by CGC's Managing Director, Datuk Wan Azhar Wan Ahmad at a signing ceremony today.
Under the agreement, CGC guarantees 70 per cent of the approved total principal amount undertaken by SMEs and assists to verify the credibility of applicants in consultation with Saadiq.
The scheme enables SMEs to gain quicker access to financing with speedier turnaround time in terms of approval and disbursement as applications are evaluated for eligibility based on a predetermined and simplified set of criteria.
SMEs have the advantage of transacting the trading process with aqad or contract process via Short Messaging Service (SMS) upon acceptance with speedy full financing disbursement within three days. The Bank also benefits from certainty of a pre-determined guarantee cover percentage for the amount that is agreed upon giving it higher level of confidence in granting financing to the SMEs.
Prior to the launch of the Islamic PG scheme, RM500 million of financing has been made available via the conventional PG scheme in partnership with CGC benefiting about 2000 SMEs.
The Islamic PG Scheme is available at all Saadiq and Standard Chartered Bank branches nationwide.