Boost Bank, Malaysia’s homegrown digital bank, has partnered with CGC Digital, a fintech subsidiary of Credit Guarantee Corporation Malaysia Berhad (CGC), to enhance support for eligible underserved micro, small, and medium enterprises (MSMEs) across Malaysia.
Under this partnership, a total of MYR 130 million ($29.39 million) has been earmarked for Boost Bank’s financing solutions – term loan facility and revolving credit facility, the duo said in a statement on Thursday.
CGC Digital will provide CGC’s guarantee cover through bundling with Boost Bank’s MSME financing solutions to further strengthen MSME access to finance.
This offering aims to reach out to thousands of MSMEs and bridge the critical financing gap these businesses face, while enabling businesses to enhance operations and capitalize on growth opportunities.
It is noted that Boost Bank’s term loan financing offers MSMEs a convenient application process with minimal documentation required for loan amounts from MYR 50,000 ($11,302).
The facility features a financing tenure of up to 36 months with no early settlement fees, facilitating effective cash flow management by MSME borrowers.
Businesses can also enjoy flexible repayment options to be more in sync with their cash flow needs without incurring any penalty.
Meanwhile, the bank’s revolving credit financing offers MSMEs flexibility to manage their cash flow and rise to business opportunities with ease with its swift financing disbursement feature, which enables businesses to receive funds in as fast as two working days upon approval of the loan.
“At Boost Bank, we understand the unique needs of MSMEs and the critical role financing plays in their growth,
“In line with our mission to drive financial inclusion and growth for underserved communities, we are committed to providing a platform that opens doors to growth, empowering businesses to overcome challenges and achieve success,” said Fozia Amanulla, Chief Executive Officer of Boost Bank.
According to her, this partnership with CGC Digital strengthens the firm’s ability to offer seamless, fast, and accessible financing solutions, empowering MSMEs to overcome challenges and seize growth opportunities.
“We will continue to innovate transformative offerings that will elevate the MSME landscape in Malaysia,” she added.
Meanwhile, Yushida Husin, Chief Executive Officer of CGC Digital, said that Boost Bank is the firm’s first digital bank partner, marking a significant milestone in its journey towards facilitating access to financing with digital-first partners.
“By collaborating with Boost Bank, we can offer seamless, efficient, and accessible financial products that cater to the unique needs of MSMEs,” she said.
According to her, this partnership is a significant step forward in the firm’s mission to support underserved MSMEs by providing them with the financing they need to succeed.
She said it also aligns perfectly with the purpose for which CGC Digital was established—collaborating with digital-first partners.
“We are excited about the potential this partnership holds and are eager to explore further collaborations with other digital-first players in the industry,
“Our goal is to continuously enhance our offerings, ensuring that we remain at the forefront of financial innovation,” she added.
Boost Bank and CGC Digital are committed to addressing the needs of underserved MSMEs and promoting financial inclusion while ensuring MSMEs receive the support they need to thrive in today’s economy, said the statement.