Agrobank and Felda Team Up to Deliver Better Value for Settlers
KUALA LUMPUR – Agrobank is set to extend its financial assistance facilities to the Federal Land Development Authority (FELDA) settlers nationwide following its collaboration agreement inked with FELDA during the celebration of national-level FELDA Settlers Day in Maktab Rendah Sains Mara (MRSM) FELDA Trolak yesterday.
During the event, YAB Prime Minister Tan Sri Muhyiddin Yassin announced a financial assistance scheme to help second generation of FELDA settlers to own their first home.
He said, “I am aware that one of the crucial issues among FELDA settlers is financing for the new generation of FELDA settlers to own a home through the Program Pembiayaan Perumahan Generasi Baharu FELDA (PGBF) scheme. I want to share some good news today. Agrobank has agreed to extend the terms of the financings and offer lower profit rates to eligible applicants.”
Commented on the collaboration with FELDA, Khadijah Iskandar, Covering President / Chief Executive Officer of Agrobank said, “Driven by Agrobank’s goal to focus on programmes aimed at supporting the unserved and underserved communities, Agrobank is honoured to collaborate with FELDA and came up with some innovative financing solutions to the FELDA community.”
With the collaboration, Agrobank will provide a home financing programme under PGBF to assist the second generation of FELDA settlers nationwide to own their first house without burdening them with the high upfront cost and profit rate.
“We believe that there is a growing desire for home ownership amongst Malaysians, however housing unaffordability remains a major hurdle for most people intending to own a house especially for the low-income group in the agriculture industry.”
“As the main financier for this programme, Agrobank is offering financing up to 110%, with a financing rate at base rate + 1% per annum, indirectly opens up opportunities for more FELDA settlers who are earning less than RM5,000 a month to own a home,” she added.
Apart from providing home financing programme under PGBF, the collaboration between Agrobank and FELDA is also aimed to improve the economic position of FELDA settlers, by providing entrepreneurship and plantation financings through Program Pembiayaan Mikro (Micro Financing) – Bukan Komoditi and Program Perladangan – Tanaman Kelapa Sawit dan Getah.
These programmes are aiming at developing entrepreneurial capacities and mindsets among the FELDA settlers and at the same time to increase the productivity of the settlers’ production in the agrofood, palm oil and rubber sectors.
“As a bank that understands agriculture better, Agrobank is committed to empowering the agro-community including the FELDA settlers through our unique and structured financing programmes. Hopefully through this collaboration, we would be able to help FELDA settlers to pursue their agro-based business ventures and at the same time to improve their socio-economic status,” said Khadijah.
Agrobank provides shariah-compliant financial solutions focused on making a positive economic, social and environmental impact for the long term through its sustainable business practices.
The adoption of shariah-compliant financing solutions to help businesses effect positive change is also in line with Bank Negara Malaysia’s objective to drive Value Based Intermediation (VBI) practices through Islamic financing.