Business

BNM Disaster Relief Facility increased to RM500 mil for flood-hit SMEs

Finance Ministry reiterates allocation provided through commercial banks to fund replacement of business equipment

Updated 4 years ago · Published on 26 Dec 2021 4:14PM

BNM Disaster Relief Facility increased to RM500 mil for flood-hit SMEs
Up to RM500,000 in aid will be provided to SMEs affected by the floods, while micro-entrepreneurs can borrow up to RM75,000, says Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz. – The Vibes file pic, December 26, 2021

KUALA LUMPUR – The Finance Ministry (MoF) has reiterated the increase in funding for the Disaster Relief Facility (DRF) 2022 by Bank Negara Malaysia to RM500 million from RM200 million.

The financing facilities will be provided through commercial banks for micro, small and medium enterprises (MSMEs) to finance the replacement of equipment damaged by floods, as well as for working capital.

“Financing up to RM500,000 will be provided for SMEs; while micro-entrepreneurs can borrow up to RM75,000. The financing period is up to five years, including a moratorium on repayment for six months,” Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said in a statement today.

The financing rate is up to 3.5% per annum, including guarantee costs. Applications can be made through commercial banks from tomorrow.

The government will continue to monitor the situation and the MoF, in particular, will always be ready to provide adequate allocations to assist flood victims as soon as possible, he said.

The increase in the DRF funding was announced by Prime Minister Datuk Seri Ismail Sabri Yaakob on December 22 as an initiative to ease the burden of flood victims. – Bernama, December 26, 2021

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