Agrobank expects to disburse at least US$15.7 million in loans with the launch of its latest product aimed at reducing the financial burden of the padi farmers.
The bank's president/chief executive officer, Wan Mohd Fadzmi Wan Othman, said the target involved signing up 10,000 borrowers nationwide.
"Paddy-i and another new product, Paddy Cash-i, which are syariah-compliant, can be used not only for padi planting but also the personal need like the education for the children," said the bank's president/chief executive officer, Wan Mohd Fadzmi Wan Othman
Wan Mohd Fadzmi said Paddy-i was an enhancement over the conventional padi credit scheme which offered revolving capital financing of up to RM2,500 per hectare with total funding ranging from RM1,000 to RM50,000.
On the other hand, Paddy Cash-i involves helping the farmers finance their daily needs such as buying or renting land, rent or leasing their padi land and buying of agricultural machinery.
He said the concepts of Paddy-i and Paddy Cash-i financing were unique as they were for farmers who were registered with Padiberas Nasional Bhd.
The scheme did not need a deposit and the age limit was 70 for Paddy-i and 65 for Paddy Cash-i. The two products were expected to help the farmers increase their yield without the need to depend on government subsidies.
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