The National Entrepreneur Group Economic Fund (Tekun) has set aside RM65 million to aid 4,000 informal and micro-entrepreneurs in Selangor, said Deputy Minister of Entrepreneur Development and Cooperatives Datuk Ramanan Ramakrishnan.
Ramanan stated that the primary objective of this financing initiative is to improve the economic status of entrepreneurs in the state. He added, “As of January this year, RM7.35 million has already been disbursed to assist 225 Tekun Selangor entrepreneurs.”
“Entrepreneurs who are keen on expanding their businesses should seize the opportunity to secure funding,” he mentioned during the launch of the Selangor Tekun Madani Carnival, which was also attended by Tekun National chairman Datuk Abdullah Sani Abdul Hamid on Saturday (March 2).
According to Ramanan, Tekun Nasional offers financing of up to RM100,000 for a maximum period of 10 years at an interest rate ranging between two to four per cent, significantly lower than other financial institutions offering financing.
Since its establishment in 1998 until January 2024, Tekun Nasional has disbursed business financing funds totaling RM9.15 billion to 574,348 entrepreneurs nationwide.
Moreover, Ramanan highlighted that 137,520 Tekun National borrowers have outstanding debts exceeding six months, amounting to over RM1.1 billion. In Selangor alone, 22,662 borrowers are struggling to repay their loans, followed by Sabah (16,945) and Kedah (14,823).
Ramanan urged these borrowers to settle their debts promptly so that the benefits of the business financing fund can be extended to other entrepreneurs in need.
He emphasized that as of January 2024, the nationwide loan default rate stands at 12.66 per cent, with Selangor registering a default rate of 21.53 per cent.
Ramanan stressed the importance of adhering to repayment schedules, stating that failure to repay loans not only impacts individual borrowers but also hinders others in need of similar financial assistance from accessing it. – Bernama
