HAWKERS and small business operators, who need additional capital, can turn to the Penang government and Penang Development Corporation (PDC) for financial aid under the Skim Pinjaman Harapan (SPH).
PDC Entrepreneur Development Division manager Ku Zaleha Ku Iskandar said there were five schemes under SPH offering loans from RM1,000 to RM25,000.
“Different schemes have different duration of repayment but no collateral and guarantor are required. The eligibility depends on several criteria,” Ku Zaleha said.
The SPH, which was previously known as Projek Titian Saksama Rakyat (PTSR) Negeri Pulau Pinang, was established in 2009 and open to all races.
As of October this year, Ku Zaleha said the total loan disbursement stands at RM15.51 million while the amount collected back is RM12.84 million.
“We’ve given out loans to 3,060 applicants as of October this year and the repayment rate is around 85%.
SPH’s objectives are also to promote the culture of “savings” among them and strengthening the capabilities and management of small business.
The loan for Scheme 1 is from RM1,000 to RM5,000, Scheme 2 (RM6,000-RM10,000), Scheme 3 (RM11,000-RM15,000), Scheme 4 (RM16,000-RM20,000) and Scheme 5 (RM21,000-RM25,000).
The duration of repayment is 12 to 24 months for Scheme 1 with no administration fee or interest for the first year and 24 to 36 months for Scheme 2 to Scheme 5 with 8% on annual administration fee.
Loan overlap to the next scheme, or what is called leap scheme, is allowed only after 50% of the repayment of the current scheme is settled with a good repayment record.
Ku Zaleha said the types of business eligible for loan application include food/beverage stall, clothes, eyewear, scarves, fruits, snacks shops, services – workshop (car & motorcycle), spa, laundromat, computer/mobile phone repair; night market/morning market; manufacturing – cakes, biscuits, chocolates & frozen food; online businesses, food truck business.
To qualify for the loan, the applicant must be a Malaysian aged between 18 and 60, a Penang voter, lives and runs a business in Penang, possesses business licence and has managed the business for more than six months.
Applicants can download the forms from the PDC website or visit PDC office in Bayan Baru.
Story by K.H. Ong
Pix by Darwina Mohd Daud