More than 100 traders are struggling to pay back the Entrepreneurial Group Economic Fund (Tekun) loan after their stalls were demolished by local authorities in Penang.

The traders affected are from Bayan Baru, Teluk Kumbar, Bayan Lepas, Batu Feringghi and Teluk Bahang, said Tekun northern region operation manager Mohd Suhaimi Ismail.

He said they were among 900 Bumiputera traders who would face action from Tekun for having defaulted their repayment for up to six months.

"Although notice of claim have been sent to them, Tekun is willing to reschedule the repayment of those who are really in difficulty to service their loans," he told Bernama .

He said to date Tekun had approved loans amounting to RM72 million for about 10,000 traders and small-scale entrepreneurs in Penang but the rate of repayment was merely 55 per cent.