45 Asnaf Micro-entrepreneurs In Selangor To Get Zakat Microfinancing Worth Rm225,000

PETALING JAYA, Dec 8 (Bernama) -- A total of 45 asnaf, or poor micro-entrepreneurs in Selangor are expected to receive zakat microfinancing of up to RM225,000 via Alliance Islamic Bank's Zakat Microfinancing Programme (Azam). 

Chief executive officer Rizal Il-Ehzan Fadil Azim said the funds are expected to be handed over soon based on the recipients screened by Amanah Ikhtiar Malaysia (AIM) and the Selangor Zakat Board.

"Alliance Islamic Bank will bear all management costs related to this programme and will initially allocate RM225,000 in zakat wakalah funds via a revolving fund to benefit a total of 45 asnaf micro-entrepreneurs. 

"Those who qualify and need working capital or capital expenditure support can obtain zakat microfinancing funds of up to RM5,000," he told reporters after the signing ceremony of the strategic partnership agreement between Alliance Islamic Bank Bhd and AIM for the Azam programme here today. 

He explained that this microfinancing is based on the “qard” principle whereby the recipient only needs to repay the financing principal without any element of profit or interest.

"The repaid funds will be ploughed back to the zakat fund for the next financing distribution cycle to other asnaf persons," he said. 

He said an asnaf person who has been successful but needs additional capital can also be considered for microfinancing under the initiative. 

Rizal said this is a productive form of zakat distribution in which the zakat benefit is used to help asnaf groups who aspire to become entrepreneurs obtain capital or loans to expand their businesses. 

He said that it is estimated that there are at least 500,000 poor people in Selangor, with the number of asnaf families recording an increase to 157,000. 

"Hence, via assistance from this fund, it is hoped that we can successfully move many asnaf persons out of the cycle of poverty and in the future, they can also become zakat contributors," he said. 

Meanwhile, AIM managing director Mohamed Shamir Abdul Aziz said to continue to help asnaf micro-entrepreneurs, the Azam programme is equipped with a skills improvement training module that includes business and financial management as well as marketing knowledge. 

"This collaboration allows us to help low-income micro-entrepreneurs improve their business skills through training and mentoring sessions," he said.

-- BERNAMA