FORMER prime minister Najib Razak today suggested a low interest loan scheme for those above the age of 18 to help Malaysians suffering financially due to the Covid-19 pandemic.

Najib said the i-Survive RM5,000 scheme should be guaranteed by the government with an interest rate of 3% per annum or RM150 per annum or a maximum of RM450 per annum for the period of three years.

“There is no monthly instalment under this scheme and the government will help repay the principal with a half deduction of BR1M or BPN (Bantuan Prihatin Nasional) for the B40 and M40 groups starting next 2022,” Najib said in a Facebook post.

He said he is suggesting this scheme as many have no savings in their Employees’ Provident Fund (EPF) while the latest i-Citra scheme introduced under the Pemulih aid programme was a disappointment.

The Pekan MP said the Perikatan Nasional (PN) government has spent RM600 billion without any promising result and that he suggested this scheme to prevent people from going to community credit companies.

“The repayment period is until a year later with an interest of only 3% per annum with no monthly instalment. Just pay the annual interest of RM150 and the balance of the principal in full before the three-year period ends,” Najib said.

“If BR1M is RM2,000 a year then the government will deduct RM1,000 next year to be used to repay RM1,000 for the principal of the i-Survive scheme.”

If RM1,000 is paid by the government every year then the total loan of RM5,000 will be reduced by RM3,000. Borrowers only need to settle the remaining RM2,000, he said.

“Borrowers who are able to repay after the economy recovers, are encouraged to settle in full,” he added.

Najib said the scheme should be opened to everyone given that they are registered under the Inland Revenue Board.

“Register today and get an automatic approval. The RM5,000 will be credited within three days,” Najib suggested.

He said banks will still not be at a loss as the 3% interest rate is still higher than the 1.95% interest rate paid by banks for the three-year fixed deposit at the moment.

“The bank will also not lose because the government will help pay off part of the debt each year and guarantee the entire loan amount.”

“Banks will still profit although the amount will not be high,” added Najib. – July 5, 2021.