The financing will be made via the bank’s Ar-Rahnu Flexi package, a facility for cooperative bodies to obtain working capital funding for Ar-Rahnu franchise business, which offers a maximum withdrawal of 80 per cent of the value of gold mortgaged and a maximum period of up to five years.
Senior Vice-President Corporate Banking, Abdul Razak Abu Bakar, said each branch would receive an average capital injection of RM5 million.
“To date, a total of RM370 million have been disbursed to 28 cooperatives which are involved in the Ar-Rahnu business.
“The bank records a revenue of RM1.4 million every month since the Ar-Rahnu business was established in 2008,” he told reporters after the launch of the Ar-Rahnu Flexi programme here today.
Meanwhile, Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Hasan Malek, said the Ar-Rahnu traders must be prepared to provide collateral either in the form of shares or properties to obtain loans.
“Through competitive financing packages, it is able to attract more cooperatives in Malaysia to become franchise owners in the Ar-Rahnu business, thus helping to manage cash flows more efficiently.
“In order to transform the business so that it grows bigger, the cooperatives must make thorough preparations in terms of mental, physical and financial resources,” he said.