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Datuk Seri Dr Zambry Abd Kadir addressing Yayasan Bina Upaya staff. Pic by Muhaizan Yahya

IPOH: YAYASAN Bina Upaya Darul Ridzuan (YBUDR), the state community empowerment agency, is coming down hard on loan defaulters.

Menteri Besar Datuk Seri Dr Zambry Abd Kadir said since its inception four years ago, there are hardcore defaulters who had yet to start servicing their loans.

Citing the agency’s micro credit scheme as an example, Zambry said of the 3,227 approved loans, the majority had defaulted on repayments.

As for the agency’s Skim Rumah 1 Amanjaya (SR1A), Zambry said only 34 per cent of the borrowers had serviced their loans.

“Due to the defaulters’ refusal to pay back their loans, we cannot offer loans to others,” he said.

He said the agency had received more than 2,200 applications for its micro credit scheme and 1,169 applications for SR1A scheme.

Zambry said the agency would be sending reminders to defaulters urging them to pay.

“Legal action will be the last resort.”

He said the purpose of setting up YBUDR was not for profit.

“It is aimed at helping the poor break the cycle of poverty.”

He noted the allocation for YBUDR would be increased to RM10 million next year from RM5 million this year.