PARTNER 2 TO LET SMEs KNOW REASONS FOR FAILURE TO SECURE LOANS

16 Jul 2013 07:54

KUALA LUMPUR, July 15 (Bernama) -- Small and medium enterprises (SMEs) will now be able to know the reasons why their loan applications cannot be considered by participating commercial banks via PARTNER 2.

PARTNER 2, the second phase of PARTNER, is an initiative by the Association of Banks in Malaysia (ABM) and a majority of its council banks, which aims to streamline and enhance the processes and procedures involved for SME loan applications.

In a statement today, ABM Executive Director, Chuah Mei Lin, said SMEs would like to understand the rationale for a particular loan application not being able to be considered by a bank.

"To accommodate their requests, participating banks will now adopt a template which sets out a checklist clearly identifying the areas in which the applicant has failed to satisfy.

"Hopefully, unsuccessful applicants will appreciate what is lacking in their applications and work towards being better prepared in their next loan application," she said.

A total of 10 commercial banks will be participating in PARTNER 2 for a start, including Malayan Banking Bhd, CIMB Bank Bhd, Hong Leong Bank Bhd, Public Bank Bhd, RHB Bank Bhd and Alliance (M) Bhd.

Chuah said the checklist to be used by the banks would cover broad reasons such as the weaknesses of the business plan, the adequacy of the security/collateral, and the relevance of the credit history. -- BERNAMA

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