Bank Islam Malaysia Bhd has launched the iTEKAD micro-financing programme with an allocation of RM5.3 million in micro-financing facility and zakat (tithe) contribution.
iTEKAD is a social finance initiative to support sustainable income generation and financial resilience of asnaf (deserving recipients of zakat) and the bottom 40 percent household income group (B40)-owned micro-enterprises during the current challenging landscape.
Bank Islam chief executive officer Mohd Muazzam Mohamed said the first phase of the programme is expected to benefit 100 recipients by year-end.
“The programme offers seed capital with an affordable micro-financing arrangement for eligible applicants to start and grow their business to generate sustainable income.
“In addition to the funding of working capital, iTEKAD will use zakat fund for the purchase of tools and equipment required for eligible recipients,” he said in a statement today.
Mohd Muazzam said Bank Islam is allocating RM5 million from Bank Negara Malaysia’s Micro-Enterprise Facility Fund for this micro-financing programme.
Eligible applicants, who meet the asnaf criteria guided by the Shariah rules and principles, will benefit from a provision of RM300,000 zakat fund from Bank Islam, he said.
iTEKAD also involves collaborations with selected implementation partners such as state Islamic religious councils, agencies and non-governmental organisations.
As the pioneering participating Islamic financial institution, Bank Islam will be working together with the Federal Territories Islamic Religious Council and SME Corporation Malaysia in the first phase of the programme.
Through this collaboration, the recipients will receive structured entrepreneurship and financial management training to ensure that they receive a more holistic understanding, skills and knowledge in managing their business efficiently and sustainably, he said.
To date, Bank Islam have received 14 applications, mainly from micro-entrepreneurs in the food and beverage, manufacturing and services sectors within the Federal Territories.
He said the selected participants will be undergoing training under SME Corp Malaysia beginning July 2020.