By FMT Staff
SHAH ALAM: Selangor has set aside RM70 million to assist the poor in the state to secure funds to carry out business activities under a micro-credit scheme.
The scheme is among several mechanisms introduced by the state to free the poor from the vicious poverty cycle.
It will be put into place towards the end of the year. It will begin in Sabak Bernam before spreading to Kuala Selangor, Hulu Selangor, Kuala Langat and Sepang.
Initially the state will identify 50 recipients who will be awarded seed money of RM3,000 each to begin their business.
Borrowers are expected to begin repayment of their loans after a year of business operations.
The scheme does not require a deposit nor will an interest fee be imposed on the loan.
However, the state has insisted that all borrowers meet on a weekly basis with their local representatives to ensure that the repayment of loan is on schedule.
Sri Muda assemblyman Suhaimi Shafie urged all Selangor locals who qualify to take this opportunity to change their lot.
He said although the government had done away with bureaucracy, monitoring of the recipients project and development was an essential part of the scheme.
“To ensure that the recipients succeed, continuous monitoring is essential especially in relation to the repayments," said Suhaimi.