KUALA LUMPUR: Bank Negara Malaysia (BNM) is making available a RM500mil disaster relief facility for small medium enterprises (SMEs) affected by the recent floods in the northern states of Peninsular Malaysia.
The central bank said on Tuesday the facility was to alleviate the financial burden of the SMEs and enable them to resume their business operations.
“Under this facility, the affected businesses could obtain financing at a concessionary rate from any commercial bank, Islamic bank and development financial institutions regulated by BNM.
“BNM will provide 60% guarantee on the financing obtained through Credit Guarantee Corp Malaysia Bhd (CGC),” it said.
It said the facility would be available to Malaysian SMEs affected in the districts identified by Agensi Pengurusan Bencara Negara as flood disaster areas.
It added the maximum amount of financing is RM500,000 per group of companies;
The financing is for repairs and or purchases of assets to replace those damaged by the flood and working capital.
“Effective financing rate chargeable is up to 2.25% per annum; and the tenure of the financing is up to five years, with a grace period of six months on financing repayments,” it said.
BNM advised the affected SMEs to approach participating financial institutions. The facility is available for application from Wednesday until May 31, 2018.
“Financial institutions have also committed to give top priority to all requests for assistance from customers who have been affected by the flood,” it said.
Members of the public are advised to contact the customer service centres of their financial institutions directly for enquiries or assistance needed. The public may also contact BNM’s TELELINK at 1-300-88-5465 for additional information or assistance.
BNM joins corporations such as Malayan Banking Bhd, CIMB Bank Bhd, Public Bank Bhd, Bank Islam, RHB Bank, Naza Kia, Perodua and AmGeneral Insurance that have come forward to assist victims of the recent floods in Penang, Kedah, Perlis and Perak.
Already a subscriber? Log in.
Limited time offer:
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!