KUALA LUMPUR, Nov 7 ― Bank Negara Malaysia (BNM) is providing a RM500 million Disaster Relief Facility to alleviate the financial burden and assist small and medium enterprises (SMEs) affected by the recent floods in the northern states of Peninsular Malaysia to resume their business.

Under this facility, it said the affected businesses could obtain financing at a concessionary rate from any commercial bank, Islamic banks and development financial institutions regulated by BNM.

"BNM will provide 60 per cent guarantee on the financing obtained through Credit Guarantee Corporation Malaysia Bhd,” the central bank said in a statement today.

It said the financing facility, with a maximum of RM500,000 per group of companies, is available to Malaysian SMEs affected in the districts identified as flood disaster areas by the National Disaster Management Agency.

"The fund is to be utilised for repairs or purchase of assets to replace those damaged by the floods, including as working capital.

"The effective financing rate chargeable is up to 2.25 per cent per annum and the loan will have a maximum tenure of five years, with a six-month grace period on financing repayments,” BNM said.

It said the facility is available for application from Nov 8, 2017 until May 31, 2018 and businesses needing assistance could approach the participating financial institutions.

The SMEs are advised to contact their financial institutions’ customer service centres directly for enquiries, it said.

They may also contact BNM's TELELINK at 1-300-88-5465 for additional information or assistance, it added. ― Bernama