E-wallet Boost and Aspirasi, the financial services arm of Axiata Group, are offering a low-cost micro-financing support for small and medium enterprises (SMEs), as well as micro-SMEs (MSMEs) this upcoming Ramadan. Dubbed the Aspirasi Capital for Boost facility, it can be used as working capital to cover overhead and operating costs as businesses prepare for Ramadan sales.
Offered under Axiata Group’s ongoing Aspirasi Assist Covid-19 Assistance Programme, the Aspirasi Capital for Boost facility allows SMEs and MSMEs to obtain loans of up to RM20,000 per business. It has a tenure of 18 months, although no repayment is required during the first six months. Repayment only begins on the seventh month onwards, with a low monthly interest rate of 0.5% or 0.75% – depending on the amount of loan taken.
On top of that, applicants for the Aspirasi Capital for Boost facility can also opt for an additional personal accident micro-insurance plan at a premium of RM79.50 (one-time payment) for a coverage duration of 18 months. Underwritten by Great Eastern General Insurance Bhd, the Aspirasi SME OwnerProtect-X insurance plan will provide applicants with a lump sum payout of RM10,000 for their financing in the event of accidental death or accidental permanent disability. There is also an emergency expenses relief benefit, where they can get reimbursement of up to RM1,000 in the event of accidental death, accidental permanent disablement, and hospitalisation for more than 4 days due to an accident.
According to a statement by Boost, the introduction of the Aspirasi Capital for Boost facility is timely as merchants are currently gearing up for Ramadan. This will require them to invest in necessities, such as bazaar space rental as well as raw material and ingredient costs. Additionally, the loan can be used to help digitalise businesses with contactless payment methods or social media marketing.
The chief executive officer of Boost, Mohd Khairil Abdullah also commented that although the economy is now gradually reopening, many businesses are still facing financial challenges because of reduced footfall and sales due to movement restrictions. “Many micro-businesses are particularly affected, and it’s harder on them because many don’t have access to the traditional financial system. Realising this, last year we moved beyond digital payments into digital financial services and Aspirasi Capital for Boost is part of our new solutions for merchants,” he said.
To apply for the Aspirasi Capital for Boost micro-financing facility, you must be a Malaysian or permanent resident aged between 18 to 65 years old. Additionally, the nature of your business must be shariah-compliant. If you meet these eligibility criteria, then go on ahead and apply online. Alternatively, you can also speak to Boost representatives. If approved, the financing will be credited into your bank account within 48 hours.
For more information, head on over to the Aspirasi Capital for Boost website here.