Funding Societies Rolls Out Islamic Financing Products For Malaysian MSMEsby Fintech News Malaysia May 30, 2023 0 comments
Digital financing platform Funding Societies has rolled out a suite of Shariah-compliant financing solutions for creditworthy and underserved Malaysian micro, small and medium enterprises (MSMEs) seeking to grow their business.
These Islamic financing solutions include Business Term Financing-i, Micro Financing-i, and Invoice Financing-i.
Interested SMEs can apply for these financing solutions online. According to Funding Societies, there are zero collateral requirements for this.
Following a soft launch in May 2022, Funding Societies said that the Shariah-compliant financing propositions have seen encouraging take-up from SMEs.
The platform targets to have at least 50% of its disbursement from its Shariah-compliant financing portfolio by 2025.
Funding Societies has been operating in Malaysia since 2016 and has disbursed more than RM2 billion in financing in Malaysia since its inception.
Across the region, more than RM13.74 billion has been disbursed through more than 5 million transactions as of 2022.
Wong Kah Meng, Group Chief Operating Officer of Funding Societies | Modalku and Co-founder of Funding Societies Malaysia said,
“Access to finance is mission critical for inclusive growth and MSME development. Case in point, there is a RM90 billion SME financing gap in Malaysia.
Given Malaysia’s leadership in Islamic finance, it is timely for us to scale our Shariah-compliant proposition to support creditworthy Malaysian SMEs of all sizes to thrive,”
Chai Kien Poon, Country Head of Funding Societies Malaysia said,
“Besides launching our Islamic financing proposition, we have developed Shariah-compliant investment products for our investors. This allows investors to diversify their investments while joining us to support a critical segment of the Malaysian economy.
We have seen very encouraging demand from investors (retail, high net worth individuals and institutions) and look forward to working with financial institutions to offer Shariah-compliant investments to their customers.”