Shariah-compliant P2P financing platform microLEAP has just been appointed by SME Corporation Malaysia (SME Corp) as the financial intermediary under its Digital Financing Initiative (DFI) pilot project.
The collaboration will see SME Corp disburse RM 10 million worth of Shariah-compliant financing to Micro, Small & Medium Enterprises (MSMEs) through MicroLEAP’s readily available, fully online platform that provides an array of Shariah-compliant financing services.
With this, issuers (borrowers) are able to raise low-cost financing from RM 50,000 to RM 500,000 with the option of monthly repayments between 1 to 36 months. Added to that, these funds will be disbursed to the business within four working days (excluding public holidays), upon approval and completion of the Islamic Commodity Murabahah Trade.
To qualify for this program, applicants must first be a member of SME Corp.
“We are proud to be joining hands with SME Corp to reach out to businesses and assist them in raising the financing they require. With SME Corp being an agency under the Ministry of Entrepreneur Development and Cooperatives (MEDAC), we are thrilled to be given this opportunity to assist the government to facilitate this shariah-compliant financing to more businesses in need. We look forward to this partnership and hope that we are able to continue making a positive impact,”
added Tunku Danny Nasaifuddin Mudzaffar, Founder and CEO of microLEAP.
“We at SME Corp believe that it is the duty of all parties, be it public or private, to assist vulnerable businesses through these uncertain times. MSMEs in particular have been severely affected by the disruptions to cash flow. As the bedrock of our economy, it is important to ensure that these businesses are able to raise funds in a timely manner alongside reliable, online and shariah-compliant platforms such as microLEAP,”
said Rizal Nainy, CEO of SME Corp.
This story follows a similar partnership struck between MicroLEAP, Bank Pembangunan Malaysia and MDEC.