KUALA LUMPUR: The National Entrepreneurial Group Economic Fund (Tekun Nasional) has introduced the Indian Community Entrepreneur Development Financing Empowerment Scheme (Spumi Goes Big), which gives a RM30 million boost to the existing scheme.
Deputy Entrepreneur Development and Cooperatives Minister Datuk R. Ramanan said this brings the total allocation to RM60 million, the largest since it was introduced in 2007.
Under Spumi Goes Big, small businesesses can get financing of between RM50,000 and RM100,000, he said.
He said previously, entrepreneurs could apply for loans of between RM1,000 and RM100,000.
"So, most of them used it to settle outstanding premise rent and buy raw materials for their businesses to stay afloat, among others.
"With Spumi Goes Big, we aim to take the entrepreneurs to the next level and grow their businesses by opening another branch, for instance," he said at a press conference today.
To apply for a Spumi Goes Big loan, borrowers need to furnish a copy of their income tax statement, in addition to identification card, business permit, photo of the business location and three months of bank statements, he said.
With an interest rate of four per cent, Ramanan said, some 2,000 entrepreneurs were expected to benefit from the initiative.
Since its inception, Spumi has helped more than 28,000 Indian entrepreneurs, like small contractors, agriculture and agro-based sectors, services, retail, manufacturing and online businesses, with a total allocation of RM450.5 million.
"We also provide another platform for the Indian entrepreneurs to expand their business further through the Memorandum of Understanding with Bank Rakyat and SME Bank, where we can recommend good paymasters to allow them to apply for a loan of up to RM10 million.
"This is in line with the government's Madani aspiration to make sure that no one is left behind."
Applications for Spumi Goes Big opens from April 15.
Forms can be downloaded from Tekun Nasional's website and applications can be submitted to any of the 183 branches nationwide.
