RHB Bank Launches Business Growth Financing Package for Small and Medium Industries (SMI)

Kuala Lumpur, 13 August 2001-RHB Bank Berhad ("RHB Bank"), Malaysia''s third largest commercial bank, today launched the Business Growth Package, an additional financing facility to assist Small and Medium Industries (SMI) in their business expansion efforts.

Entrepreneurs in middle market businesses and SMIs involved in manufacturing, wholesale and retail trade, and services will find in the RHB Bank Business Growth Package a financial solution that offers competitive interest rates from as low as 4.25% and a higher margin of financing of up to 200%.

In addition, entrepreneurs will also have access to other products and services within the financially diversified RHB Group of companies.

RHB Bank has set aside RM 1.2 billion for loans under the Business Growth Package which can be used for the purchase of completed factories or shophouses that will be occupied by the borrower, working capital or to refinance borrowings from other banks or finance companies.

Entrepreneurs can opt to take the loans under conventional financing or Islamic financing. Under conventional financing, the line of credit can be given out as Term Loans, Overdraft, Multi-Trade Lines, Bank Guarantees or Foreign Exchange Contract Lines. Under Islamic financing, the facilities are given out as Bai Bithaman Ajil, Islamic Overdraft, Islamic Multi-Trade Lines or Kafalah Bank Guarantees.

Under the Business Growth Package, the loans disbursed to borrowers can range between RM 500,000 to RM 10 million with the option of including stamp duty, legal fees and documentation expenses as part of the loan.

To be eligible, entrepreneurs must show at least three years of business profitability and must be viable Malaysian owned businesses with shareholders'' funds of not less than RM 500,000.

Apart from the competitive rates and higher margin of financing, eligible borrowers will also enjoy benefits from companies within the RHB Group such as pre-approved credit cards with free personal accident insurance coverage for directors and key management staff, asset backed lending for purchase of new equipment and machinery and hire purchase and leasing facilities.

The Business Growth Package is being offered for a three-month period from August 13, 2001.

Issued by RHB Public Affairs & Communications. For more details, please contact Celina May Ong at Tel 03-9802534 content