AGROBANK will extend its financial assistance facilities to Federal Land Development Authority (Felda) settlers nationwide.
This follows an agreement inked with Felda during the national-level Felda Settlers Day celebration in Maktab Rendah Sains Mara Felda Trolak in Sungkai, Perak.
At the event, Prime Minister Tan Sri Muhyiddin Yassin announced a financial assistance scheme to help second-generation Felda settlers own their first home.
“I am aware that financing is one of the crucial issues for the new generation of Felda settlers when it comes to owning a home through the Felda New Generation Housing Financing Programme (PGBF) scheme.
“I want to share some good news today. Agrobank has agreed to extend the terms of the financing and offer lower rates to eligible applicants,” he said.
With the collaboration, Agrobank will provide a home financing programme under PGBF to assist second-generation Felda settlers nationwide to own their first house without burdening them with high upfront costs.
Agrobank covering president / chief executive officer Khadijah Iskandar said, “We believe there is a growing desire for home ownership among Malaysians.
“However, the lack of affordable housing remains a major hurdle for most people wanting to own a house, especially the low-income group in the agriculture industry.
“As the main financier for this programme, Agrobank is offering financing up to 110%, at base rate of +1% per annum, indirectly opening up opportunities for more Felda settlers who are earning less than RM5,000 a month to own a home,” she added.
Apart from providing the home financing programme under PGBF, the collaboration between Agrobank and Felda is also aimed at improving the economic position of settlers, by providing entrepreneurship and plantation financing through a Micro Financing programme –- Non-commodity and Farming Programme –- for oil palm and rubber plantations.
These programmes are aimed at developing Felda settlers’ entrepreneurial capacities while increasing their productivity in the agrofood, palm oil and rubber sectors.
“As a bank that understands agriculture better, Agrobank is committed to empowering the agro-community, including Felda settlers, through our unique and structured financing programmes.
“Hopefully, we will be able to help Felda settlers pursue their agro-based business ventures and at the same time, improve their socioeconomic status through this collaboration,” said Khadijah.
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