Micro Enterprise Fund (MEF): Helping Home Based- Micro Enterprises In Malaysia
Finding a loan scheme for a home-based Micro Enterprise is not an easy thing to do. Many financial institutions focus on bigger businesses, and the loans offered could not be convenient for ones running a micro company. Due to this, sometimes, cash flow problems might occur due to which the business idea might not deliver as much as it should. Well, this has been recognized in Malaysia Bank Kerjasama Rakyat Malaysia Berhad has brought forth a funding program, the Micro-Enterprise Fund (MEF), which has been helping financially aid micro enterprises in Malaysia. And today, we talk about it in details.
Micro Enterprise Fund (MEF): What Is It All About?
Micro Enterprise Fund (MEF) is a program from Bank Rakyat, which provides micro enterprises in Malaysia a loan from RM 1,000- RM 50,000 based on the needs and scalability, in the sector of agriculture and services. The financing concept is the Shariah Concept (Tawarruq), and the loan is provided to a member of cooperatives, micro-enterprises or self-employed people. The objective of this program is to help small businesses innovate and provide better services or products to reach more customers eventually, and the scope of the program includes working capital and capital expenditure.
An upside of the program is that if in case you take the loan, you could also apply for a training program to hone your entrepreneurship. Rebates are available if you repay the fund quickly. Another thing to notice is that this is an easy financing scheme. This means you will get loans easily and the bank will provide you insurance for the loan funds.
Here are the conditions to be fulfilled before you can apply for the fund.
- The applicant must be a member of Cooperatives and Hawkers and Petty Traders Association.
- The individual should have the dedication to be part of the microenterprise full-time.
- A minimum of 2 years of business experience is mandatory.
- The age requirement is between 18 to 65 years old and be a Malaysian.
- The business should be incorporated in Malaysia with SSM and have all the required license.
- The business premise should be in the place of residence.
- The person should belong to a self-help group.
If you meet the requirements, you could apply for the scheme.
In order to apply, first, you will have to make sure that you fulfill the requirements for the program. For this, you will need the following documents.
- A Copy of MyKad
- Business registration certificate and licenses.
- Recommendation Letters from panel cooperatives and self-help group members
- Bank statements and other certificates that prove your income stability.
After that, approach the nearest Bank Rakyat Branch, where you will fill out an application form. Submit your application along with a copy of the documents. You will be asked to sit down for an interview. You will discuss your business idea and viability, and receive your funds after the approval of your application.
Well, this was it for the article. I hope it helped you with your questions about the Micro Enterprise Fund.