Deputy entrepreneur development and cooperatives minister R Ramanan said the amount involves more than 100,000 borrowers and comprises the collective sum of loans due for repayment and new loans.

“They (the borrowers) are making the repayments. When we advise them and make calls to speak with them, payments are made. However, some funds are stuck,” he said without elaborating.

“If the RM2.6 billion is returned to us, we can provide more loans to other borrowers out there,” Bernama quoted him as saying.

Ramanan also announced that Tekun borrowers with less than 50% of their loan amount to repay or less than two years of repayment left were allowed to apply for a second round of financing.

Applicants must have a good record of repayments, he said.