PETALING JAYA, March 2 —The National Entrepreneur Group Economic Fund (Tekun) has allocated RM65 million in financing to support 4,000 informal and micro-entrepreneurs in Selangor.

Deputy Minister of Entrepreneur Development and Cooperatives Datuk Ramanan Ramakrishnan, said this financing iinitiative aims to uplift the economic status of entrepreneurs in the state.

"As of January this year, RM7.35 million has already been disbursed to assist 225 Tekun Selangor entrepreneurs.

"For entrepreneurs who wish to expand their business, take the opportunity provided to get funding,” he said when launching the Selangor Tekun Madani Carnival which was also attended by Tekun National chairman Datuk Abdullah Sani Abdul Hamid here today.

According to Ramanan, Tekun Nasional channels financing of up to RM100,000 for a period of up to 10 years at an interest rate of two to four per cent, far much lower than other financial financing institutions.

Since its creation in 1998 until January 2024, Tekun Nasional has channelled business financing funds amounting to RM9.15 billion to 574,348 entrepreneurs nationwide.

Meanwhile, Ramanan also said that 137,520 borrowers of Tekun National have outstanding debts exceeding six months, totaling over RM1.1 billion.

Among these borrowers, the highest number failing to repay their debts are from Selangor, with 22,662 borrowers, followed by Sabah (16,945) and Kedah (14,823).

Ramanan called on the Tekun borrowers involved to settle the outstanding debts promptly so that the benefits of the business financing fund could continue to be extended to other entrepreneurs in need.

He further highlighted that as of January 2024, the nationwide loan default rate stands at 12.66 per cent, with Selangor recording a default rate of 21.53 per cent.

Ramanan urged borrowers to adhere to repayment schedules, adding that failure to repay loans not only affects individual borrowers but also prevents others in need from accessing similar financial assistance. — Bernama