Microcredit loans cushion impact of pandemic

KUALA LUMPUR: The RM1 billion micro-credit scheme under the Permai assistance package will help cushion small and medium-sized enterprises (SMEs) from the impact of the Covid-19 pandemic.

B. Goobi, 41, who owns a company that sells and services air-conditioner (AC) units in Taman Bukit Pelangi, Shah Alam, said he had previously applied for a few loans that helped him pay workers and shop rental.

“We have struggled quite a bit since Covid-19 hit last year.

“Most of our customers are factories and companies nearby, and when they had to close down during the first round of the Movement Control Order (MCO), we had pending payments from them for quite some time.

“It put me in a pickle as I have to pay my workers’ salaries and shop rental.

“However, I did not let go of any of the 10 workers.

“We sought customers from residential areas and continue servicing AC units to keep the business afloat.”

Previously, Goobi had applied for a loan from the National Entrepreneur Group Economic Fund (Tekun).

“My friend had advised me to apply, since I had just started my business and I was operating from home.

“The loan was approved in less than two months after we submitted the application, and it amounted to RM35,000.

“I was so thankful when the loan was approved. It changed my life.

“With that loan, I managed to rent a shoplot here and bought a van to transport equipment and AC units.”

He encouraged local SMEs to apply to Tekun and other micro-credit schemes that offer to help them sustain their businesses, as these loans facilities offer lower interest rates compared with other loan facilities.

“And with the microcredit schemes under Permai, I think it will definitely help the SMEs out there.

Fruit trader, Mohd Harraz Mohd Rumizi, 23, who is from Kelantan, thanked the government for the assistance.

Harraz said he would benefit from the incentives for SMEs and the Covid-19 red zone handout announced under Permai.

“I can use the money to repair and service the lorry used to transport the fruits I sell.”

He said his sales had declined by about 30 per cent.

“Following MCO 2.0, sales has been slower because fewer people go out,” he said.

S. Sarojini, 51, a widow, said she hoped to get help under the Permai assistance package’s Food Basket Programme.

Sarojini, who was a masseur at the Malaysian Association for the Blind before the Covid-19 pandemic, said she used to be able to support herself.

“But now all that has changed. And we cannot go out and take on any work like others due to our disability.

“I live alone and have to depend on the Welfare Department’s aid to survive. So any help I get, I am grateful for it.”

Source: NST