The Ministry of Entrepreneur and Cooperatives Development(KUSKOP), through Tekun Nasional, has approved financing totaling RM204.5 million for 9,412 Indian entrepreneurs under the Indian Community Entrepreneur Development Scheme (SPUMI) from 2019 to November 2024.
Deputy Minister Datuk Seri R. Ramanan stated that of the total, 1,877 entrepreneurs, or 20 percent, have been reported to credit agencies for failing to repay their financing to Tekun Nasional.
He stated that to address the issue of loan repayment, Tekun Nasional has introduced several measures, including organizing financial education programs in collaboration with the Credit Counseling and Debt Management Agency (AKPK) and conducting regular monitoring of the affected entrepreneurs.
“The next step is to enhance communication in the debt collection process by sending automated reminders via mobile applications, such as SMS or email, to make it easier for entrepreneurs to manage their payment schedules.”
“Finally, a restructuring option is being offered, which includes rescheduling for entrepreneurs facing financial difficulties. This provides more flexible repayment plans, such as extending the repayment period or reducing monthly payments,” he said during the Q&A session in the Dewan Negara.
Ramanan stated that the ministry is also implementing an approach to offer additional loans to borrowers who make consistent payments for six consecutive months without fail, to help their businesses recover.
The opportunity for additional financing serves as an incentive for borrowers to maintain consistent repayments, ensuring the sustainability and recovery of their businesses. These efforts reflect the ministry’s dedication to fostering entrepreneurial resilience and driving economic progress within the community.
Source: Bernama
Follow us on Instagram, Facebook or Telegram for more updates and breaking news.
