MIDF: More flood-hit SMEs will seek loans [ 26-04-2011 ]
By Hamisah Hamid
KUALA LUMPUR: Malaysian Industrial Development Finance Bhd (MIDF) expects to receive 70 applications this month for the RM10 million soft loans allocated for the small and medium enterprises (SMEs) affected by the recent floods in the country.
Group managing director Datuk Mohd Najib Abdullah said so far, MIDF has received 10 applications for processing and another 60 applications are expected to be submitted this month.
"More applications are expected to be received as public awareness of this special government assistance increases through the briefings undertaken by MIDF and SME Corp Malaysia (SME Corp).
"MIDF offers government-funded financial assistance loans of up to RM100,000 each to companies and enterprises in the manufacturing and services sectors which are affected by floods in the states of Johor, Malacca and Negeri Sembilan," he told Business Times in an interview recently.
Najib said the loan repayment is up to five years with an interest rate of three per cent per annum.
He said a series of briefings had been jointly conducted by MIDF and SMECorp in Segamat, Jasin and Gemas.
MIDF is in the midst of processing 10 loan applications and approvals are expected to be made next month, he said.
"Due to the good response so far, we are optimistic that the funding allocation of RM10 million will be well utilised," he added.
Najib said MIDF will expedite the loan disbursements so that the assistance can reach the borrowers as soon as possible to help rebuild their flood-hit businesses.
SME Corp recently announced the RM10 million allocation to help SMEs affected by flooding in the country.
SME Corp chief executive officer Datuk Hafsah Hashim said the companies can apply for the soft loans from MIDF between April 1 and May 31.
According to her, state district offices need to verify that the SMEs are affected by the floods.
