BNM allocates RM200m for MSMEs affected by floods

The funds have been channelled through DRF 2022 which would assist them in the repairs and replacing assets for businesses


BANK Negara Malaysia (BNM) has allocated funds worth RM200 million for micro and small and medium enterprises (MSME) affected by the floods.

The funds have been channelled through the Disaster Relief Facility 2022 (DRF 2022) which would assist them in the repairs and replacing assets for businesses, as well as the working capital.

“The DRF 2022 is available to SMEs, including microenterprises, with a maximum amount of financing up to RM500,000 per SME and up to RM75,000 per micro enterprise.

“The tenure of the financing is up to five years, including a moratorium period of 6 months on both principal and interest/profit payments,” it said in a statement.

The maximum financing rate is 3.5% per annum which includes any guarantee fee while the facility is accessible from Dec 27 until full utilisation or further notice.

Businesses which have been impacted can apply from participating financial institutions which consist of commercial banks, Islamic banks and development financial institutions regulated by BNM.

“The banking and insurance industry is committed to assisting those affected. The financial industry has announced various flood assistance initiatives.

“For further details, members of the public can contact their financial institutions by referring to their respective websites.”

Previously, banks have extended assistance to borrowers affected by the floods which includes six-month repayment deferment to lessen the burdens faced by the victims.

Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd have mobilised a “Flood Relief Assistance” programme which offers up to a six-month payment deferment on loan and financing facilities.

The deferment includes credit cards and is available for affected individuals, SMEs and micro-enterprise customers.

It is also offering free replacement for bank-related documents lost in the floods such as debit and credit cards, as well as cheques and bank statements that were damaged.

Similarly, Public Bank Bhd and Public Islamic Bank Bhd are offering repayment relief for flood victims with loan and financing facilities.

The repayment relief includes deferment of monthly instalment for loan and financing of up to six months, on a request basis and is applicable to loan and financing facilities such as house financing, hire purchase and credit cards for individual customers, as well as SME loan and financing for affected businesses.

Meanwhile, Bank Islam Malaysia Bhd announced the commencement of the Prihatin Programme for Flood on Sunday to assist all of its affected financing customers.

Under the programme, affected customers with financing facilities can apply for financial relief of up to six months on their monthly commitment and replace bank-related documents for free.

The group’s CEO Mohd Muazzam Mohamed said the bank is taking proactive actions in helping its customers who were affected by the floods especially as the country is still battling with the Covid-19 pandemic.