Thanks to an initiative called PARTNER 2, small and medium enterprises (SMEs) will now be able to know the reasons for the rejection of their loan applications by participating commercial banks.
PARTNER 2, the second phase of PARTNER, is an initiative by the Association of Banks in Malaysia (ABM) and a majority of its council banks to streamline and enhance the processes and procedures involved in SME loan applications.
In a statement today, ABM executive director Chuah Mei Lin said SMEs want to know why some of their loan applications are not being considered by a particular bank.
"To accommodate their requests, participating banks will now adopt a template which sets out a checklist that clearly identifies the areas which the applicant has failed to satisfy.
"Hopefully, unsuccessful applicants will appreciate what is lacking in their applications and work towards being better prepared in their next loan application," she said.
A total of 10 commercial banks will be participating in PARTNER 2 for a start, including Malayan Banking Bhd, CIMB Bank Bhd, Hong Leong Bank Bhd, Public Bank Bhd, RHB Bank Bhd and Alliance (M) Bhd.
Chuah said the checklist to be used by the banks will cover broad reasons such as the weaknesses of the business plan, the adequacy of the security/collateral and the relevance of the credit history. - Bernama, July 15, 2013.