Ahlul Bayt News Agency (ABNA.ir), MAYBANK Singapore is offering smaller firms an Islamic commercial property loan that comes with one of the longest fixed interest rate terms here.
The product, called Maybank Islamic Term Financing, will provide small- and medium-sized enterprises (SME) with financing for completed commercial and industrial properties, on a mid- to long-term basis.
Maybank said in a statement on Tuesday that both fixed- and floating-rate packages can be offered in terms of up to 10 years - much longer than the two to three years that are generally offered by lenders here. It also said SMEs that take up its floating rate packages can enjoy more peace of mind because the floating rate comes with a 5 per cent cap on effective rates per year.
The announcement comes after the success of a similar Syariah-compliant commercial property financing product, launched in Malaysia last June.
Maybank Singapore head of Islamic banking Mohd Ismail Hussein said the product had contributed significantly to Maybank's Islamic SME financing portfolio - worth more than RM597 million (S$258 million). 'What was interesting was that in Malaysia, 40 per cent of our Islamic financing base is made up of non-Muslim businesses,' he said.
'Similarly, I think the take-up of Islamic financing will be good here across both Muslim and non-Muslim SMEs because of the certainty and peace of mind it provides, especially given the current uncertain global economic environment.'
source : http://abna.ir
