Teraju, SME Bank to set up RM500m fund

Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20120706135308/Article/index_html

Published: Monday July 06, 2012

The Unit Peneraju Agenda Bumiputera (TERAJU) will join hands with SME Bank to set up a new RM500-million loan facility to assist Bumiputera companies under the Teras programme, said Minister in the Prime Minister's Department, Tan Sri Nor Mohamed Yakcop.

He said the Teras Fund, as it is known, is aimed at facilitating the business expansion of high-performing Bumiputera companies.

Under the Teras Fund, which is open to Teras companies that fall under the small and medium enterprises (SME) category, SME Bank will offer a loan facility of up to RM20 million per company, to assist business expansion through working capital and asset buying financing.

"We will allocate RM150 million for the working capital lending, for which a company can borrow between RM1 million to RM10 million. The RM350 million allocated for the asset buying financing will enable a company to apply for a loan of up to RM20 million.


"We expect a good take-up response from about 130 companies currently under the Teras programme. This is because the loans will not have very strict collateral agreements, in contrast with commercial banks," Nor Mohamed told reporters after chairing the meeting between TERAJU and the country's five economic corridors in Kuala Lumpur today. -- BERNAMA