KOTA BARU: The Malaysian Industrial Development Finance Bhd (MIDF) has allocated RM60 million through the Second Chance Financing (2CF) scheme, which is designed to offer financial support to struggling small and medium enterprises (SMEs).
MIDF group chairman Tan Sri Abdul Rahman Mamat said the scheme, which was launched on June 16, 2023, would enable qualified borrowers facing financial difficulties to apply for a minimum loan of as low as RM50,000 up to a maximum loan of RM5 million with a profit rate of three per cent.
"The scheme would help companies facing financial problems or affected by the current economy due to the Covid-19 pandemic. We do not want them to continue to fail but we try to provide a lifeline for them.
"Usually, these affected companies apply for loans from commercial banks and their applications are not approved. So, they can come to MIDF to apply through this new scheme," he told reporters after the "Program Santai Petang bersama MIDF", which was also attended by MIDF head of financial development Azizi Mustafa, here today.
Abdul Rahman said seven companies have shown interest to apply for loans through the scheme with a total application value of RM21 million.
He said MIDF was also in cooperation with the Credit Counselling and Debt Management Agency (AKPK) to give opportunities to troubled companies, including those that have been blacklisted, to enable them to apply for loans.
"The response to this scheme has been encouraging. If their applications are approved, they will have to enter into a financing agreement with MIDF in addition to a five-year loan repayment period.
"In terms of loan applications, MIDF will re-examine the loan amount whether it is eligible or not to obtain the loan application as a whole.
However, we are committed to supporting the government's efforts in helping companies whether large or small because we believe in the potential for excellence and growth of each company," he said. --BERNAMA