Bank Rakyat issues 7,000 microcredit loans to SMEs

December 17 2010

Source : Asian Banking & Finance

Entrepreneurs who cannot fulfill the lending requirements can avail loans of up to $15,960.

More than 7,000 small businessmen, involving various races throughout the country, have secured loans totalling more than RM100 million ($31.96mln) under the Micro Credit Loans Scheme from 50 Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) branches, since 2007.

Bank Rakyat's Micro Credit Department Manager Norbaiti Rahmat said the scheme is aimed at giving the space and facility to small businessmen who cannot fulfill the requirements of banks such as surety, provides loans of between RM1,000 ($320) to RM50,000 ($15,960), for their businesses.

"Apart from not requiring any surety, the borrowers only need to join the Self-Help Group (KBD) programme, of between five to ten people, to make an application to the Micro Credit Department," she told Bernama after officiating the Family day of the Bank Rakyat Kulim Micro Credit Entrepreneurs Club here Monday.

She said the programme can not only assist the entrepreneurs and small businessmen avoid being entangled with the "Ah Long" culture but also overcome the problem of making repayments to banks later.

About 200 entrepreneurs and small businessmen who joined the club were present with their families for the gathering, which was the first of its kind.

They were among those who had taken micro-credit loans from the Bank Rakyat Kulim branch from the time it was introduced in 2007 to the present.