NST Business
KUALA LUMPUR: Bank Negara Malaysia (BNM) has announced the availability of a RM500 million Disaster Relief Facility to alleviate the financial burden and assist in the resumption of business operations of the small medium enterprises (SMEs) affected by the recent floods in the northern states of Peninsular Malaysia.
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 per cent guarantee on the financing obtained through Credit Guarantee Corporation Malaysia Berhad (CGC).
The salient features of the Facility are:
• Available to Malaysian SMEs affected in the districts identified by Agensi Pengurusan Bencara Negara as flood disaster areas;
• The maximum amount of financing is RM500,000 per group of companies;
• Financing is for the purpose of repairs/purchases of assets to replace those damaged by the flood and working capital;
• Effective financing rate chargeable is up to 2.25 per cent per annum; and
• The tenure of the financing is up to five years, with a grace period of six months on financing repayments.
Businesses which need assistance can approach participating financial institutions. The Facility is available for application from tomorrow 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.