Financing facility available for MSMEs affected by floods – Bank Negara

KUALA LUMPUR, Dec 21 – Bank Negara Malaysia (BNM) said micro and small and medium enterprises (MSMEs) affected by the recent floods nationwide can seek financing assistance through the Disaster Relief Facility 2022 (DRF 2022).

In a statement Monday, BNM said the RM200 million DRF 2022, which will be available from Dec 27 until full utilisation or until further notice, will assist SMEs in covering the costs of repairs and/or replacement of assets for business use (e.g. plants and machinery) which have been damaged by floods; and/or for working capital.

The loan facility is available to SMEs, including microenterprises, with a maximum amount of financing of up to RM500,000 per SME and up to RM75,000 per micro enterprise. The tenure of the financing is up to 5 years, including a
moratorium period of 6 months on both principal and interest/profit payments.

The financing rate is up to 3.50 percent per annum, inclusive of any guarantee fee. Businesses affected by the floods can apply from participating financial institutions which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM.

Further information on the facility can be obtained by contacting Bank Negara Malaysia at bnm.gov.my/LINK.

More information on various flood assistance initiatives by financial institutions can be obtained through their respective websites as well as from the industry associations’ websites such as the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA).

–WE