Image via Lazada.

Lazada inks deal with CIMB Bank to provide small loans for SME merchants

SINGAPORE-based online retailers Lazada have signed a partnership agreement with a Malaysian bank to enable online merchants to expand by taking up small loans.

According to the agreement, Malaysia’s CIMB Bank Bhd will make their enterprise clean loans (ECL) available to Lazada merchants to support the expansion of Malaysian small and medium enterprises (SMEs).

“The collaboration is a joint effort by CIMB and Lazada to provide a holistic solution and added convenience to empower Malaysian SMEs to grow their business,” the companies said in a joint statement.

“This customized ECL, a non-collateral financing with competitive interest rates, offers financing of up to RM300,000 per company with loan tenures of up to five years.”

SEE ALSO: Singapore: Government launches SME and start-up-friendly loan of up to $218,000

According to The Star, CIMB is also enabling more merchants to embrace digital banking beyond the retail sales sphere – in terms of financing their businesses and availing themselves of its business advisory for their operations through digital offerings such as ‘Clicks/BizChannel’ and ‘Plug n Pay’, among others.

“In line with CIMB Group’s T18 strategy, this collaboration is another initiative that strives to meet the evolving and growing digital needs of our customers, particularly in the eCommerce space,” said CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz.

Currently, Lazada has approximately 12,000 sellers on board. Lazada Malaysia CEO Hans-Peter Ressel said the collaboration is a strong testament of helping merchants succeed online.

“The partnership with CIMB Bank affirms the strategic choices Lazada has made in building the eCommerce ecosystem in Malaysia.

“It will bring significant synergies by giving Lazada merchants the option to enhance their online business and provide their customers with the best choices, convenience and value,” he said, as quoted by Astro Awani.