Agrobank to disburse RM13m loans this week

By Rupa Damodaran
Published: 2009/05/29

AGROBANK will give RM13 million in loans to more than 500 applicants this week under the government's stimulus package, said its chief operations officer Ahmad Said.The bank received RM300 million under the RM60 billion second stimulus package announced in March.

The money is for a micro-credit scheme without collateral to help farmers and small traders in rural areas."We also expect to disburse the rest of the money this year," he said in an interview yesterday.Individuals can apply for as much as RM50,000 for activities related to fruit tree crop production, fisheries and animal husbandry business.

On the loans growth target for this year, Ahmad said the bank expects to achieve 23 per cent growth on the back of growing interest in agricultural activities in the country."Unlike other agro-based economies like Thailand and the Netherlands, Malaysia has still much room to develop its domestic market," he said.

Agrobank approved a total of RM4.6 billion in loans last year.As at end April, the total loans outstanding stood at RM4.9 billion from RM4.6 billion in 2008."We expect it to expand to RM5.7 billion in 2009."The bank, which has 172 branches, plans to open five kiosks in the country, at Kinabatangan, Pekan, Kota Damansara, Kepong and Wangsa Maju.The focus on more kiosks in the Klang Valley was to boost its deposit level.