TRRF and MEF to further aid SMEs and micro enterprises

SMALL and medium enterprises (SMEs) are able to obtain financing for working capital purposes of up to RM500,000 for a tenure of up to seven years, including a repayment moratorium of at least six months under the Targeted Relief and Recovery Facility (TRRF).

The facility, as explained by Bank Negara Malaysia (BNM), is offered at a rate of up to 3.5% per annum and is available through 21 participating financial institutions (PFIs), with a guaranteed coverage by the Credit Guarantee Corporation (CGC).

As announced in the Budget 2021, the RM2 bil facility is aimed at assisting SMEs in the services sector and is available until Dec 31, 2021, or until it is fully utilised.

Apart from that, the Micro Enterprises Facility (MEF) has been enhanced to improve access to credit for micro enterprises to include self-employed individuals, gig workers on digital platforms and participants of the iTEKAD programme, which is a social financing programme that supports micro entrepreneurs from the B40 segment.

The central bank also said that the MEF has been increased from RM300 mil to RM410 mil, with an available balance of RM200 mil.

Eligible micro enterprises can obtain financing of up to RM50,000 for working capital and capital expenditure purposes.

The financing rate will be determined by the PFIs, adding that PFIs can also seek guarantee coverage from CGC or SJPP for this facility.

“Interested SMEs can apply for the TRRF directly from PFIs, which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM via their websites or by visiting the PFIs’ branches.

“For the MEF, interested micro enterprises can apply directly to PFIs under the Skim Pembiayaan Mikro,” said BNM. – Dec 2, 2020

Share on facebook
Share on twitter
Share on whatsapp
Share on email

Subscribe and get top news delivered to your Inbox everyday for FREE