Loans Totalling RM140 Mln To Be Given Out Via Urban Micro Credit Assistance Programme

Written by Writer on Thursday, October 23rd, 2008

Loans Totalling RM140 Mln To Be Given Out Via Urban Micro Credit Assistance Programme

KUALA LUMPUR, Oct 23 (Bernama) — The urban micro credit assistance programme, which is to help combat urban poverty, is expected to provide loans to more than 40,000 borrowers in the town areas involving RM140 million in total as of end next year.

Announcing this, Second Finance Minister Tan Sri Nor Mohamed Yakcop today said the government’s intention to eradicate urban poverty is expected to be achieved through a revolving capital fund of RM100 million operated by Amanah Ikhtiar Malaysia (AIM) nationwide.

Since its launch, the programme has todate provided financing of up to RM520,000 to 182 borrowers, he said when launching the programme at AIM’s Puchong branch here today.

“I have been informed that the programme has been actively carried out in the Klang Valley. Towards this, AIM is taking steps to set up seven branches in the Klang Valley by end of this year,” Nor Mohamed said.

In 2009, AIM’s operations under the programme will cover other towns in Peninsular Malaysia and will be fully enjoyed by all the qualified borrowers by end of next year.

Nor Mohamed also hoped that the low-income groups in the town areas, expecially in the Klang Valley, will take up the opportunity provided to expand their business opportunities and raise their respective incomes.

At today’s event, 51 borrowers took receipt of their loans amounting to a total of RM149,000.

Asked on whether the government will increase the revolving capital fund, he said: “The fund is a revolving capital fund and it is sufficient for this year and 2009. If there is a need to raise this, I don’t think there will be a problem.”

Meanwhile, Chairman of AIM Datuk Amihamzah Ahmad said the rate of repayment by borrowers had been excellent at 98 percent.

He said 17 of the 70 AIM branches had recorded a repayment rate of 100 percent.

– BERNAMA