What are the interest rates for the micro credit scheme?

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Sarawak Micro Credit Scheme Offers Interest-Free and Low-Interest Loan Options

The Sarawak Micro Credit Scheme provides two distinct categories for loan applications, catering to different financial needs and capacities. The first category offers loans ranging from RM1,000 to RM10,000 with absolutely no interest charged, aiming to provide accessible capital for smaller businesses and individuals. For those requiring larger sums, the second category allows for loans up to RM50,000, but with a nominal interest rate of 2 per cent.
Interest-Free Loans for Smaller Amounts

A significant component of the Sarawak Micro Credit Scheme is its provision of interest-free loans. This first category is designed for applicants seeking financial assistance between RM1,000 and RM10,000. This feature significantly reduces the financial burden on recipients, making it easier for small businesses and individuals, particularly those in the B40 group, petty traders, and small-medium enterprises (SMEs), to access necessary funds without incurring additional interest costs.
Low-Interest Loans Available for Higher Amounts

The scheme also accommodates larger financial requirements through its second category. This tier allows eligible applicants to borrow sums of up to RM50,000. While not interest-free, these loans come with a competitive interest rate of only 2 per cent. This structure ensures that businesses needing more substantial capital can still benefit from affordable financing, supporting their growth and operational needs during challenging economic periods.
Funding and Allocation for the Scheme

The Sarawak Micro Credit Scheme is supported by a substantial financial allocation, reflecting the state government's commitment to assisting SMEs. A total of RM20 million has been earmarked for this scheme as part of a broader financial aid package announced on March 20. This amount is in addition to the RM30 million previously allocated under the state Budget 2020, bringing the total dedicated funding to RM50 million.
Agencies Facilitating Loan Applications

To streamline the application process for the Sarawak Micro Credit Scheme, the Sarawak Economic Development Corporation (SEDC) and AgroBank Malaysia have been appointed as the designated agencies. These institutions will manage the applications from tomorrow, allowing eligible recipients, including the B40 group, petty traders, and SMEs affected by the movement control order (MCO), to apply for these soft loans. Application forms are accessible via the websites of the state ministry of international trade and industry, industrial terminal and entrepreneur development, SEDC, and AgroBank, with online application options also available.

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What are the interest rates for the micro credit scheme?

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