KUSKOP APPROVES RM204.5 MLN IN FINANCING FOR INDIAN ENTREPRENEURS UNTIL NOV 2024

KUALA LUMPUR, Dec 16 (Bernama) -- The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) through Tekun Nasional, has approved RM204.5 million in financing to 9,412 entrepreneurs under the Indian Community Entrepreneur Development Scheme (SPUMI) from 2019 to November 2024.

Deputy Minister of KUSKOP, Datuk Seri R Ramanan said that of the number 1,877 entrepreneurs or 20 per cent have been listed with credit reporting agencies due to repayment failures.

He said that to address the issue, Tekun Nasional has implemented measures such as collaborating with the Credit Counselling and Debt Management Agency (AKPK) to provide financial education programs and monitoring entrepreneurs closely to ensure repayment compliance.

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"The third is to strengthen communication in the debt collection process by sending automatic reminders via mobile applications such as SMS and email, to help borrowers manage payment schedules.

"Finally, offering restructuring options, such as extended payment periods or reduced monthly instalments, for those facing financial difficulties," he said during a question-and-answer session in the Dewan Negara today.

He was responding to Senator Datuk Sivaraj Chandran's query about the percentage of borrowers blacklisted for repeatedly failing to repay SPUMI financing and the measures taken to address the issue.

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Meanwhile, Ramanan said the ministry offers additional loans to borrowers who make consistent payments for six consecutive months, helping to support business recovery.

Payments can be as low as RM30 per month for those opting for restructuring. However, loan write-offs are not an option, as they would limit opportunities for other entrepreneurs to expand their businesses," he added.

-- BERNAMA