Tuesday, April 8, 2008

Special Micro Credit Loans for Micro Businesses

Most often micro business people have tremendous difficulties in securing micro loans as they do not have collateral or guarantors. Many fall victims to loan sharks or are indebted to pawn shop dealers.

The Ministry of Finance has made special provisions to assist micro business people with micro loans of RM3,000 for the first loan, RM5, 000 for the second and RM 10, 000 for the third.

According to Datuk Dr Denison Jayasooria, YSS, Ministry of Finance officials invited YSS officers for a briefing and gave the details. While the project is yet to be launched they have given ‘the go ahead’ to secure the name list. We were told that if we can find a 1,000 genuine micro business people fulfil the requirement, there is an undertaking that they will be able to secure the first loan sometime early this year.

Some requirements highlighted:

  • The individual must have a household income of below RM1,000.
  • The person could be involved in business such as selling vadai or tailoring from the house or even someone who is just interested to start a micro business.
  • The micro loan is for the purpose for undertaking or expanding ones business.
  • The repayments must be made on a monthly basis.
  • The fund is administered by Amanah Ikthiar Malaysia.
  • Loans are individually processed and while there is no interest charge.
  • There is an administrative process fees.

This is an excellent project for single mothers who want the economic freedom through micro businesses. If we are able to identify the person with this need at the grassroots, then it would be a great assistance to enlarging the household income.

If we can collectively disseminate the information and identify the target group, Indian community would have access to RM3 million allocated for the Indian community in 2008. Let’s work together and each one find at least one person.

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source www.yss98.com ( MIC's social wing)

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