Bank Islam Malaysia Bhd has launched iTEKAD micro-financing programme for micro-entrepreneurs and those affected by the loss of income due to Covid-19.

Bank Islam said 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 the zakat fund for the purchase of tools and equipment required for eligible recipients.

“iTEKAD also involves collaborations with selected implementation partners such as State Islamic Religious Councils, agencies and non-government organisations.

“As the pioneering participating Islamic financial institution, Bank Islam will be working together with Majlis Agama Islam Wilayah Persekutuan (MAIWP) and SME Corp Malaysia in the first phase of the programme,” it said today.

Through the collaboration, Bank Islam said, recipients would receive structured entrepreneurship and financial management training.

This is to ensure they receive a more holistic understanding, skills and knowledge in managing their business efficiently and sustainably.

Minister in the Prime Minister’s Department (Religious Affairs) Datuk Seri Dr Zulkifli Mohamad al-Bakri said iTEKAD was an avenue to assist the B40 micro-entrepreneurs and asnaf who are greatly affected by the Covid-19 pandemic.

Bank Islam chief executive officer Mohd Muazzam Mohamed said iTEKAD wad parallel to its values in enhancing the wellbeing of the people through the preservation of wealth, lives, prosperity and intellect.

Mohd Muazzam said it was also in line with the Value-Based Intermediation philosophy, thus further fortifying banks’ commitment in supporting small businesses.

“Bank Islam is allocating RM5 million from Bank Negara Mslaysia’s Micro-Enterprise Facility Fund for this microfinancing programme.

“Eligible applicants that adhere to the asnaf criteria guided by Shariah rules and principles will benefit from a provision of RM300,000 Zakat fund of Bank Islam,” he said.

He said the first phase of the programme was expected to benefit 100 recipients by the end of the year.

The bank has received 14 number of applications, mainly from micro-entrepreneurs in food and beverages, manufacturing and services sectors In Wilayah Persekutuan.

“The selected participants will be undergoing training under SME Corp beginning July,” he added.