This article first appeared in The Edge Financial Daily on April 14, 2020

KUALA LUMPUR: Several members of the Association of Development Finance Institutions Malaysia (Adfim) have allocated more than RM900 million as financing aid for communities and small and medium enterprises (SMEs) affected by or forced to halt operations since March due to the Covid-19 outbreak.

Also, Adfim members have donated a total of RM14.1 million to various organisations to help frontliners and affected communities deal with Covid-19’s impact.

According to Adfim secretary-general Mohd Prasad Hanif, Adfim has 17 members, including Bank Simpanan Nasional (BSN) — the operator of the Micro Credit Scheme that has donated RM700 million to qualified businesses and entrepreneurs — and Bank Rakyat.

Through a special Covid-19 relief scheme, BSN offers easy financing to micro-entrepreneurs in all sectors needing help.

It has also eased its loan eligibility requirement with a minimum operation period of six months instead of one year.

The amount of financing has been raised as well from a maximum of RM50,000 to RM75,000 for each entrepreneur, said Mohd Prasad in a statement yesterday.

“Besides that, the bank offers mortgage-free financing of up to RM250,000 involving a special relief facility for [those in the] agrofood, automation and digital [industries] with tenures of between five and seven years,” he said.

Meanwhile, Bank Rakyat has allocated RM200 million to meet cooperatives and SMEs’ financing needs from March 23, subject to conditions to be met.

“The bank also offers a six-month moratorium on financing repayment for individuals and companies in industries affected such as aviation, tourism and transportation,” Mohd Prasad said.

Hence, Adfim urged those interested in the financing aid available to directly communicate with the respective institutions. All customer service hotlines remain in operation, Mohd Prasad added.