- Boost Bank’s Term Loan offers MSMEs easy access to loans from US$11,300.
- Initiative aims to help MSMEs close financing gaps, improve operations, & pursue growth
Boost Bank, the nation’s first 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. In a joint statement, the companies announced that under this partnership, a total of US$29 million (RM130 million) has been earmarked for Boost Bank’s financing solutions — the Term Loan facility and the Revolving Credit facility.
CGC Digital will provide CGC’s guarantee cover by bundling it with Boost Bank’s MSME financing solutions to further strengthen MSMEs’ access to finance. This initiative aims to reach thousands of MSMEs, bridging the critical financing gap these businesses face while enabling them to enhance operations and seize growth opportunities.
Boost Bank’s Term Loan financing offers MSMEs a convenient application process, requiring minimal documentation for loan amounts starting from US$11,300 (RM50,000). The facility features a financing tenure of up to 36 months, with no early settlement fees, facilitating more effective cash flow management for MSME borrowers. Businesses can also benefit from flexible repayment options, aligning with their cash flow needs without incurring penalties.
The Revolving Credit financing provides MSMEs with the flexibility to manage cash flow and respond swiftly to business opportunities. Its quick disbursement feature enables businesses to access funds in as little as two working days upon loan approval.
Fozia Amanulla, CEO of Boost Bank, shared: “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.”
“This partnership with CGC Digital strengthens our ability to offer seamless, fast, and accessible financing solutions, empowering MSMEs to navigate challenges and seize growth opportunities. We will continue to innovate transformative offerings that will elevate the MSME landscape in Malaysia,” she added.
Yushida Husin, CEO of CGC Digital, said: “Boost Bank is our first digital bank partner, marking a significant milestone in our journey towards facilitating access to financing with digital-first partners. By collaborating with Boost Bank, we can offer seamless, efficient, and accessible financial products tailored to the unique needs of MSMEs.”
“This partnership is a crucial step forward in our mission to support underserved MSMEs by providing them with the financing they need to succeed. 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 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.
Both parties affirmed their commitment to addressing the needs of underserved MSMEs and promoting financial inclusion, ensuring these businesses receive the support they need to thrive in today’s economy.