TPPA is a loan financing fund specifically for bus and taxi operators licensed under the Commercial Vehicles Licensing Board (CVLB) Act 1987 (Act 334). The fund is provided for the purchase of vehicles in order to increase the quality of service (which includes individual and company/ cooperative/ firm operators).
The objectives of this programme are to:-
- Provide a special financing facility especially for commercial buses and taxis service operators throughout Malaysia with more flexible terms and competitive rates.
- Encouraging economic growth in the public transportation industry and other related businesses whilst contributing to the socio-economic development and improving the quality of the nation’s public transportation services.
- Assisting entrepreneurs in the public transportation in bus & taxi sector to increase its competitiveness with high levels of quality service.
Applicant Eligibility/Target Group
These funds are targeted specifically for bus and taxi operators. Terms of applicants are as follows: –
|Item||Individual Applicant||Company/ Cooperative/ Firm Applicants|
|Ownership Status||Open to all Malaysian||Open to all Companies/ Cooperatives/Firms owned by Malaysians|
|License from CVLB||Own a license or Offer Letter of Approval (STK) from CVLB registered in own name/ company/ cooperative/ firm|
|Project||Project must be viable with the ability to service the loan and operated by the license holder or STK|
*Note: The evaluation of individual applications will be undertaken by MARA.
Public Transport Operators Eligible for Funding
1. Bus and taxi operators which are eligible to apply for financing under this programme are as follows: –
- Express Bus
- Stage Bus
- Shuttle Bus
- School Bus
- Factory Bus
- Charter Bus
- Mini Bus
Taxis/ Rental Car
- Rental Cars
- Airport Taxis
- Rent and Drive Cars
2. Or any other classes of public service vehicles established under Act 334 from time to time.
Note: Tour bus operators and private vehicles are not eligible under this program.
General Terms of Financing
|a.||Financing Facility Amount||
Note: The maximum period of financing should not exceed the remaining useful life of the vehicle that has been set by the CVLB to prevent the need for a change of vehicle whereas loan balance still remains.
For example, the useful life of taxis does not exceed 7 years, Express buses do not exceed 10 years and school buses do not exceed 20 years
Note : Purchase of reconditioned vehicles must be in accordance with rules established under CVLB Act 1987
|d.||Type of facilities||Financing offered through the conventional and Islamic methods:
- The profit rate charged is 4.0% per annum calculated on the remaining annual installments (annuities).
- This rate is equivalent to around 2.5% per annum for a period of 5 years.
Margin of Financing
- Up to 100% of the vehicle price and repair costs depending on the type of financing instruments offered and also the credit risk rate of the project.
- For individual applicants, a payment of RM50 will be charged for each application.
- For applicants of companies / firms / cooperatives, 0.15% of the total loan amount approved or RM 10,000 will be charged for each application, whichever is lower.