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Monday 14 December 2009

MIC Wants Monitoring Mechanism For Indian Businessmen

KUALA LUMPUR, Dec 14 (Bernama) - The MIC has asked the government to create a monitoring mechanism to help Indian small businessmen get loans from commercial banks, president Datuk Seri S. Samy Vellu said.

He said this was brought up to Prime Minister Datuk Seri Najib Tun Razak who chaired the Special Cabinet Committee on the Development of the Indian Community recently where the Finance Ministry was urged to review and make the terms more flexible.

"It was also proposed that loans or special guarantee be created to help Indian small businesmen to start business," he said after presenting a cheque for over RM1 million under Tekun Nasional Financing Scheme to 109 Indian businessmen here on Monday.

Samy who was a member of the Cabinet Committee said many Indian businessmen were finding it dificult to get loans from commercial banks including SME Bank although they qualified.

Up to Aug 31, some 2,026 Indian businessmen had applied for loans amounting RM20 million from Tekun. Of the number, 830 applications amounting RM5.8 million had been approved with 1,148 applications still pending.

Another 508 applications were stuck at MIC's Social Strategic Foundation office due to lack of funds while another 300 new application were also received.

Samy said the Prime Minister had announced during Budget 2010 that Tekun had been allocated an additional RM20 million for the Indian community.

He was aware that Tekun was facing shortage of RM350 million to meet the 16,000 loan applications approved and hoped it would be resolved soon.

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