Agrobank Malaysia is a government-owned bank dedicated to supporting the agricultural sector within the country. It operates under the jurisdiction of the Minister of Finance Incorporated. Established in 1969, Agrobank’s focus on agriculture is driven by policies set forth by the Ministry of Agriculture and Food Industries (MAFI). The bank’s financial services strengthen the agricultural sector, balancing developmental and commercial roles to benefit this sector.
Formerly known as Bank Pertanian Malaysia, Agrobank’s financing endeavors in the agricultural sector are propelled by policies established by the Ministry of Agriculture and Food Industries, aligning with the broader governmental objectives to bolster Malaysia’s agricultural sector.
Agrobank in Malaysia provides diverse loan services catering to different needs, especially focusing on the agricultural sector and related industries. Below are some of the loan services provided by Agrobank:
Personal Financing
- AgroCash-i Personal Loan: This loan service provides an approved financing amount of up to RM200,000 with different interest rates based on the borrowed amount. The rates are: Less than RM 3,000: BR + 4.72% on monthly rest, RM 3,001 – RM 5,000: BR + 4.46% on monthly rest, RM 5,000 and above: BR + 4.35% on monthly rest. Takaful Protection Scheme is compulsory with this loan service.
- Agrobank Hartani-i – Land Development Loan: This loan service is designed for personal financing, allowing up to 90% of the land value to be borrowed with borrowing periods extending to a maximum of 20 years, or until the borrower reaches 60 years old, whichever is earlier.
Business and Agriculture Financing
- Credit Limit Enhancement Program (CLEP): Aimed at long-standing and creditworthy existing customers of Agrobank to be automatically considered for an increase in their credit facilities. The financing limit under this program could go up to RM1,000,000 with a tenure of up to ten years.
- Program Agropreneur Muda (PAM): This program is targeted at young entrepreneurs in the agriculture sector, providing financing for fixed and operational capital for new and expansionary purposes. The financing limit for new projects is up to RM 50,000 and for existing projects up to RM 300,000 with a tenure of 7 years.
- Group Financing Program (GFP): Designed to assist entrepreneurs in selective sectors with market potential to start and develop a project with the guidance of expert companies. This program also aims at assisting successful companies in expanding their business by providing capital in exchange for expertise and knowledge transfer.
- Program Pembiayaan Dana TERAS: This program is to pursue more potential companies and ensure the participation of the Bumiputera companies with a financing limit of up to 80% of the project cost or RM5.0 million, whichever is lower, and a tenure capped at ten years.
Equipment Financing
- Machinery & Equipment Financing-i (MAEF-i): This financing program is listed on Agrobank’s official website under their term financing section, although the specifics regarding this service are not provided in the available resources.
Agrobank also has other financing programs and schemes tailored to different needs and sectors. They ensure that their financing services are in line with Islamic banking principles, and they have a strong focus on supporting the agricultural sector and related industries in Malaysia.