How has PUNB eased loan conditions for Covid-affected entrepreneurs?

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PUNB Eases Loan Conditions for Covid-Affected Entrepreneurs

Perbadanan Usahawan Nasional Bhd (PUNB) has significantly relaxed loan terms for Bumiputera traders impacted by the Covid-19 pandemic under the SPUR scheme. The primary adjustment requires applicants to provide only evidence of job termination due to the pandemic, with a preference for individuals who have already initiated their own businesses. This revised approach aims to expedite the application process, promising approvals within four weeks for those meeting the new criteria.
Relaxed Application Requirements and Expedited Approval

The core of the eased conditions for the Covid-19 Affected Entrepreneur Financing Scheme (SPUR) lies in the simplified documentation. Previously, more stringent criteria were applied, akin to normal loan application processes. Now, applicants only need to submit proof of employment termination directly linked to the pandemic. This change, coupled with a priority for those already operating businesses, is designed to streamline the pathway to accessing much-needed capital. The chairman, Tan Sri Noh Omar, highlighted that this expedited approval process is contingent upon meeting these revised conditions.
Increased Financial Allocation and Financing Limits

To support a larger number of entrepreneurs, PUNB has substantially increased the financial allocation for the SPUR scheme. The fund has been raised from RM5 million to RM50 million, enabling financing of up to RM100,000 per entrepreneur. This expanded funding is projected to benefit approximately 1,000 Bumiputera traders on a first-come, first-serve basis. The scheme, which commenced on May 7, had received 124 complete applications out of 2,052 registrations as of yesterday, indicating a significant capacity for further support.
Favourable Loan Terms and Repayment Deferral

Entrepreneurs approved under the SPUR scheme will benefit from favourable loan terms, including a low annual interest rate of 3.5 per cent, calculated on the monthly balance rate. Furthermore, recipients are automatically granted a six-month deferral of loan payments from the date the funds are disbursed. This grace period is intended to provide immediate relief and allow entrepreneurs to establish their businesses without the immediate pressure of loan repayments.
Re-evaluation of Rejected Applications and Broader Support Measures

In light of the relaxed conditions, PUNB will re-evaluate applications that were previously rejected due to the stricter requirements. Beyond the SPUR scheme, PUNB is extending broader support measures to its existing network. This includes a six-month deferment of principal financing repayments until December 31, 2021, benefiting 2,330 PUNB entrepreneur partners and 718 recipients of the Bumiputera Relief Financing (BRF), amounting to a collection shortfall of RM92.75 million. Additionally, 230 tenants of PUNB business premises nationwide are eligible for a 50 per cent rental discount for six months until December 31, representing an estimated RM2.89 million in rental collection.

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How has PUNB eased loan conditions for Covid-affected entrepreneurs?

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