Frequently Asked Questions – TEMAN TEKUN Financing Scheme

Published on: 04/04/2016
Updated on: 05/05/2018

What is the TEMAN TEKUN Scheme / Product?

The TEMAN TEKUN Scheme / Product is a micro-financing used to finance in groups.

What is the main condition to enter the TEMAN TEKUN Scheme?

Bumiputeras with legitimite businesses.

What is the nickname given to members who borrow?

Members or financing recipients are called TEMAN TEKUN.

What are the types and amount of financing offered by the TEMAN TEKUN Scheme?

Group Business Financing and amount as follows:-

  • First Financing from RM1,000 to RM10,000
  • Second Financing and so on up to RM20,000

As a borrower of the TEMAN TEKUN Scheme, what are the weekly obligations?

A TEMAN is required to attend weekly gatherings and make financing payments every week.

(*in certain / unavoidable cases members are allowed to attend the gathering a minimum of 2 times a month and repayments made based on the agreed financing agreement. Subject to the approval of TEKUN Nasional).

What are the types of businesses that can be applied with the TEMAN TEKUN Scheme?

All types of businesses that are legitimite and according to Sharia.

Why do I have to pay weekly? Why not on a monthly basis?

Weekly payments makes it easier for entrepreneurs. Entrepreneurs are allowed to make monthly payments but MUST attend the weekly gatherings to establish closer ties between TEKUN and Entrepreneurs.

Are there any charges or interest to the TEMAN TEKUN Financing Scheme?

Financing of the TEMAN TEKUN Scheme is imposed a management charge of 4% per annum and 5% per annum for borrower’s deposit / savings.

How long is the approval process of the TEMAN TEKUN Scheme?

The approval process is within a period of 14 working days.

What is meant by the TEMAN Gathering?

Weekly meetings between TEKUN Officers and Entrepreneurs involved in the TEMAN Group.

If an individual within a TEMAN group (5 people) wishes to make an early settlement, would he/she be allowed to do so?

Yes, TEKUN will re-offer the TEMAN or individual financing with a higher value based on the repayment records.

If there are many groups within a branch, how will the TEMAN gathering be conducted?

The TEMAN gathering will be conducted with a combination of 2 to 10 groups per branch.

Are the TEMAN TEKUN Scheme applicants allowed to make overlapping financing?

No.

If the application submitted is not sufficient to form a TEMAN team (5 members), can the application still be processed?

No it cannot be processed, the 5-member quota must be fulfilled to form a group.

If a member of a group dies, WHILE his financing application is being processed for approval, what will the further actions be?

The group will need to replace the application with a new member that has been agreed upon. The TEKUN officer may propose if a suitable member is available to replace the deceased with approval of the group.

If a member of a group dies, has made an early settlement, transferred once the application had been APPROVED, what will the further actions be?

There is no need to make a member replacement and the member’s name remains in the group, recording its status in the system.

If there are partnerships in SSM, are all the nominees allowed to make payments through the TEMAN TEKUN Scheme

Not allowed.

If a member in a group FAILS to pay, what action should be taken by TEKUN Officers?

If there are members who fail to make repayments, that member is responsible for ensuring the payment is made during the weekly gathering.

If such action still fails (entrepreneur refuses to pay), what are the further actions of the branch?

TEKUN officers will need to advise the entrepreneur and the group and if that still fails legal actions can be taken to the entrepreneur.

Is it possible if a group member wishes to borrow more than the financing amount the group had agreed upon? Example: 4 members borrow RM5,000 while 1 member borrows RM10,000.

No, all members have to agree with the same amount of financing.

Does the amount of financing for each group member need to be the same? Who should/ can determine the financing amount of a member?

Yes, the amount of financing and repayment period of each member needs to be the same. The Head of Group may propose to members and all members must mutually agree with the amount and period prior to submitting to the TEKUN Officer.

(*subject to the approval from TEKUN Nasional)

Is my financing protected by insurance?

The TEMAN TEKUN Financing Scheme is protected by Takaful Insurance. In the event of death of a TEMAN member, the insurance will cover the entire financing provided it is still under the financing period.

If there are TEMAN members which have moved premise or house?

It is compulsory for group members to make payments and remain within the group.

What are the advantages and differences of the TEMAN TEKUN Financing Scheme compared to the other schemes using the same concept?

The advantages and differences of the TEMAN TEKUN Scheme are as follows:-

  • The lowest service charge of 4% per annum amongst Micro Credit Institutions in Malaysia.
  • Members can consist of male and females.
  • Weekly gatherings are made at locations near to business premises and in a short period of time. Gatherings on a weekly basis and in certain cases allowed to attend a minimum of two times a month with the consent of TEKUN. Repayments on a weekly, fortnightly & monthly basis IS ALLOWED without reduced repayment amounts as stipulated in the Financing Agreement.
  • The amount and duration of financing is the same for each group member.
  • Early settlements of financing for any member/ groups is allowed.
  • If a member dies, makes an early settlement, moves etc., the group does not have to make a member replacement.
  • All group members (5 members) are allowed to make simultaneous financing without having to wait for the performance of other members as all are running businesses.
  • Fast approval process within a period of 14 working days.

How can I get the address and telephone number of TEKUN Branch Offices?

Please contact the Customer Service Hotline at 03 9058 8550 or visit the official website at www.tekun.gov.my to find out the addresses of TEKUN offices nationwide.