• SME News
Bank Muamalat & SME Bank Launch Kafalah Scheme For SMEs
KUALA LUMPUR, April 29 (Bernama) -- Bank Muamalat Malaysia Bhd (BMMB) and SME Bank recently signed an agreement to launch the Kafalah Scheme which will provide the small and medium sized enterprises (SMEs) customers the chance to get Syariah based financing.The deal has outlined several areas of collaboration agreed by the two parties and are expected to be implemented by both.
"The Kafalah scheme will give opportunities to customers especially those in the small and medium category in the field of manufacturing and services besides encouraging entrepreneurs to get financing from Bank Muamalat," chief executive officer of BMMB, Datuk Mohd Redza Shah Abdul Wahid said in a statement here today.
One of the three main initiatives in the agreement, signed for a term of two years, is that SME Bank has agreed to provide financial guarantee to Bank Muamalat which will provide credit or Islamic financing to new and existing operators of SMEs.
They would also carry out development training programmes to establish new entrepreneurs with high level of skills and knowledge. They would also carry out business referral activities for SMEs in order for them to obtain credit facilities from both banks. Datuk Azmi Abdullah, the managing director of SME Bank, said among the advantages of Kafalah system was that the SME customers will be able to enjoy facilities offered by commercial banks at a reasonable cost.
The scheme is also expected to raise the profile of Islamic financial services in the country. -- BERNAMA
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