Bank Muamalat gets kafalah guarantee on SME financing from PUNB

Bank Muamalat Malaysia (Bank Muamalat) signed an MOU with Perbadanan Usahawan Nasional (PUNB), Malaysia's national entrepreneur development corporation, in early December to establish a kafalah guarantee scheme under which PUNB will provide a financial guarantee to Bank Muamalat with respect to advances, credit facilities or financing provided by Bank Muamalat to established SMEs.

With the collaboration, Bank Muamalat will work together with PUNB to play an important role in the development of business community, especially for SMEs in Malaysia. The partnership with PUNB will allow the bank to add to the pool of credit available for SMEs in line with government aspirations. Bank Muamalat and PUNB also agreed to collaborate and participate in entrepreneur development activities such as joint training programmes, workshops, business matching and related activities for the benefit of SMEs. 

The bank has also enhanced its SME portfolio through its full-fledged Islamic banking platform.