Commercial Islamic Banking Institutions Ensure Continued Access To Financing

KUALA LUMPUR, Oct 5 (Bernama) -- The Association of Islamic Banking Institutions Malaysia (AIBIM) today affirmed that commercial Islamic banking institutions will remain fully supportive of businesses and SMEs by ensuring continued access to various financing schemes offered by banks.

The World Economic Forum's Global Competitiveness Report 2016-2017 highlighted that Malaysia, despite continuing to lead the region among emerging economies, faced challenges in accessing financing for doing business in the country.

AIBIM, in a statement, said the Islamic finance industry had undertaken various initiatives and provided avenues of financing to ensure businesses and small and medium enterprises (SME) had access to financing.

This included the Shariah-Compliant SME Financing Scheme which offered a maximum of up to RM5.0 million per SME which can be eligible for a 2.0 per cent profit rate on the financing provided by participating institutions.

AIBIM advised businesses and SMEs to approach their bankers for financing advisory assistance.

A convincing and sustainable business idea, good business track record and a strong business plan and team are among the criteria considered by the banks in supporting applications for loans.

-- BERNAMA