SME Bank, a financial development institution offering financing facility and advisory services for SMEs, announced the reduction in the prime rate to 5.95% with immediate effect on 3rd February.
The move was in line with the lowering of the overnight policy rate to 2.5% by Bank Negara on Jan 21, the bank said in a statement.
Previously, the SME Bank’s prime rate was 6.5%. SME Bank managing director Datuk Azmi Abdullah said the reduction was part of the bank’s commitment to help small- and medium-scale enterprises tide over with the pressures of the economic turmoil.
The bank hoped lowering of the prime rate would help maintain the country’s economic growth, he said.