KUALA LUMPUR – Financial technology (fintech) firm Boost is offering up to RM100,000 through a micro-financing facility to micro, small and medium enterprises (MSMEs), financed through its market-leading digital lending subsidiary Boost Credit.
Known as ‘Capital Plus’, the Shariah-compliant micro-financing facility is based on Commodity Murabahah, which is ideal for MSMEs, Boost said in a statement on February 3.
The financing is from as low as RM1,000 up to RM100,000 over a 15-month tenure at a low-profit rate of 1.2% a month, with no repayment of principal for the first three months.
“MSMEs do not need any guarantor or collateral to apply for this financing,” said Boost, a subsidiary of Axiata Group Bhd.
Merchants on the Boost platform who apply for ‘Capital Plus’ will enjoy a seamless application process of not more than 10 minutes, and funds will be disbursed within 48 hours, a hallmark of Boost Credit.
Boost chief executive officer Sheyantha Abeykoon said one of the key aspects of ‘Capital Plus’ is a three-month moratorium for MSMEs.
“We hope that MSMEs will find this micro-financing facility helpful in giving a boost to their recovery journey and provide them the much-needed capital to restart their businesses,” he said.