KUALA LUMPUR: Bank Rakyat has allocated RM50 million for the Indian entrepreneur community involved in micro, small, and medium enterprises (MSMEs) to enable them to expand their businesses.
Deputy Entrepreneur Development and Cooperatives Minister Datuk R. Ramanan said the initiative will be implemented through the newly launched Bank Rakyat Indian Entrepreneur Financing-i Programme (BRIEF-i).
The initiative, which Ramanan mooted, exemplifies Bank Rakyat's commitment to inclusivity and the holistic socio-economic development of Malaysian society over its 70 years of establishment.
"The dedication and commitment of entrepreneurs to grow and advance their businesses are a constant source of inspiration for me.
"Thus, I often focus on 'economic empowerment' initiatives, particularly for the Indian community. Economic strength is the only guarantee for the future and progress of the Indian community in this country. This is my belief and principle."
He said this at the launch of BRIEF-i at Menara Kembar Bank Rakyat today (June 5).
BRIEF-i offers various advantages compared to other financing programmes available in the market.
For micro enterprises, BRIEF-i offers a flat rate of 6.50 per cent per annum with financing limits ranging from RM1,000 to RM50,000.
For SMEs, the financing rate is the base financing rate (BFR) + 0.67 per cent per annum, including guarantee fees, with limits ranging from RM50,001 to RM1 million.
It does not require entrepreneurs to have forced savings or join self-help groups, and the documentation process is simple.
A guarantee by the Business Financing Guarantee Company is also provided for SME customers, along with free Takaful coverage for micro enterprises.
The application approval process takes only 14 working days, and BRIEF-i also sets eligibility criteria to ensure this financing programme reaches its target audience.
Bank Rakyat chairman Datuk Mohd Irwan Mohd Mubarak said:
"This initiative aims to help stimulate more inclusive economic growth in line with Bank Negara Malaysia's goal to ensure a positive impact on the economy and the community by providing sustainable and inclusive financial services to meet the needs of every customer segment, especially the unserved and underserved.
"Thus, Bank Rakyat hopes that this initiative can provide relief and solutions to MSME entrepreneurs to continue their businesses and make their enterprises more progressive, comprehensive, and integrated."