A RM15 million loan under the special loan scheme for Chinese new village residents has been set aside this year for eligible applicants, said Housing and Local Government Minister Chor Chee Heung.

He said RM35 million would be used for next year while another RM50 million would be disbursed betwen 2013 and 2015.

The total allocation of RM100 million comes under a micro-credit scheme announced by Deputy Prime Minister Muhyiddin Yassin last month to allow residents in the Chinese new villages to pay land premiums, refurbish their homes and use as seed money to start up businesses in the villages.

mca new cabinet member 180308 chor chee heung Chor (right ) said the government was partnering with Bank Simpanan Nasional (BSN) to facilitate the RM15 million loan, adding that forms were available at BSN.

He was speaking to reporters after attending the MCA presidential council meeting at Wisma MCA in Kuala Lumpur today.

He said it would take between seven and 21 days to approve applications for the loan which was subject to four percent interest per annum.

For a premium loan, Chor said, applicants could get loans of between RM1,000 and RM10,000, with repayment period of between two and five years. For a business loan, the amount is between RM5,000 and RM50,000.

"All applicants must be villagers from Chinese new villages, and for those who wish to apply to do business, they must get approval from the village committee. For loans to repair homes, the conditions are pending finalisation," he added.

Earlier, MCA president Dr Chua Soi Lek said MCA was setting up a task force to monitor the implementation of the scheme.

He said the task force was headed by Chor and facilitated by two MCA grassroots leaders in each state.

- Bernama