SME Corp partners Aspirasi to provide micro-financing for SMEs in Malaysia
By Digital News Asia September 29, 2020
- Deal crucial for narrowing financial inclusion gap, embracing technology
- Syariah-compliant micro-financing, US$240 to US$4.8k with favourable terms
SME Corporation Malaysia, an agency under the Ministry of Entrepreneur Development and Cooperatives (MEDAC), has signed a partnership agreement with Aspirasi, a digital financing services provider under Axiata Digital, to empower SMEs in the country through digital financing solutions.
The Memorandum of Agreement (MoA) was exchanged yesterday between Rizal Nainy, chief executive officer of SME Corp Malaysia and Sheyantha Abeykoon, executive director of Aspirasi. The agreement is crucial for narrowing the financial inclusion gap, as well as to assist underserved businesses to embrace technology as the country moves towards a digital economy.
This collaboration will benefit micro enterprises through Aspirasi Assist, an initiative from Aspirasi that offers syariah-compliant micro-financing from US$240 (RM1,000) up to US$4,800 (RM20,000). Aspirasi Assist offers favourable terms, such as a 6-month grace period, profit rates as low as 0.5%, and approved applicants receiving funding within 48 hours. Aspirasi Assist also provides micro-insurance as an additional benefit to protect approved applicants.
“At Aspirasi, our core value is to financially assist the underserved community, and we are glad to offer Aspirasi Assist to SMEs. By supporting them, SMEs will be able to continue their business aspirations without financial worries during this challenging period,” says Sheyantha.
MEDAC through SME Corp will collaborate with government-linked companies and the private sector to enhance access to financing for micro enterprises. Entrepreneurs and micro enterprises, especially those who have been impacted by the Covid-19 pandemic and the Movement Control Order (MCO) are encouraged to seize this opportunity to obtain financial assistance through this partnership between SME Corp and Aspirasi.