Loan application

SMEs having difficulty applying for a loan can seek help from Bank Negara, says Governor

KUALA LUMPUR: Small and medium-sized enterprises (SMEs) can seek assistance from Bank Negara Malaysia (BNM) if they encounter difficulties with their loan applications, BNM Governor Datuk Nor Shamsiah Yunus said today.

She explained that despite claims that banks are stricter in assessing credit profiles, general statistics showed loan disbursement has returned to pre-pandemic levels.

“Loans have increased but there are instances of denial which may not be considered justified.

“So introduce yourself, so that we can then assess each question accordingly,” she said after announcing Malaysia’s gross domestic product performance in the third quarter (Q3) 2021 on Friday.

She noted that the decision to approve any loan application would depend on the bank’s assessment of the borrower’s ability to pay.

The Governor was responding to a question about SMEs finding it harder to apply for new loans, especially those that have taken moratoriums and that banks are stricter in assessing their credit profile.

Nor Shamsiah underlined that all the activity of the banks revolves around the offer of financing, both to individuals and businesses, and thanks to prudent practices during good times, they are always able to meet the needs of financing viable businesses and individuals as the country navigates this pandemic. .

She noted that the disbursement of loans to individuals and SMEs increased by around 13.1% in the first nine months of this year, which is very similar to the pre-pandemic level.

She urged SMEs to explore the options available through the central bank’s online funding referral platform, iamSME, which would help them match funding needs with suitable offers not only from banks but also from other lenders. .

Borrowers could also use the financial advisory services offered by the Khidmat Nasihat Pembiayaan platform or MyKNP to help them with their loan application, she said.

To date, nearly 6,000 SMEs have been supported on these platforms, she added.

As for the initiative of the BNM, Nor Shamsiah said that the central bank has put in place numerous loan facilities for SMEs to help them through the pandemic and, more importantly, to invest for the future.

The central bank also announced additional allocations worth RM4.5 billion for its existing funds and two new funds dedicated to SMEs.

Earlier, when announcing the performance for the third quarter of 2021, Nor Shamsiah said Malaysia’s net funding to the private sector increased by 3.9%, reflecting weaker growth in both loans outstanding and outstanding corporate bonds.

She said outstanding SME financing grew 3.2% at the end of September 2021, as higher growth in repayments outpaced that of disbursements in the quarter, following the transition to more targeted repayment assistance. .

For the business segment, she said business loan applications and disbursements improved in September given the easing of movement restrictions.

Outstanding business loans rose 2.4%, supported by higher growth in working capital loans, she said.

“This expansion was also mainly driven by the wholesale and retail trade, restaurants and hotels, and manufacturing sectors, in line with the resumption of business activity as the economy reopened,” he said. she declared.

As for households, she said growth in outstanding loans moderated to 3.2% amid containment measures and some base effects from the earlier rebound in loan growth in the third quarter of Last year.

“Nevertheless, our flow of credit to households has been on an upward trend following the gradual easing of movement restrictions. This has translated into a steady increase in loan disbursements amid rising loan applications. in August and September,” she added. – Bernama

“This expansion was also mainly driven by the wholesale and retail trade, restaurants and hotels, and manufacturing sectors, in line with the resumption of business activity as the economy reopened,” he said. she declared.

As for households, she said growth in outstanding loans moderated to 3.2% amid containment measures and some base effects from the earlier rebound in loan growth in the third quarter of Last year.

“Nevertheless, our flow of credit to households has been on an upward trend following the gradual easing of movement restrictions. This has translated into a steady increase in loan disbursements amid rising loan applications. in August and September,” she added. – Bernama