Friday, 9 September 2016

‘Study scheme to give out housing loans’

KUCHING: The government’s move in allowing developers to provide housing loan facilities may just be the right solution for property buyers facing difficulties in securing bank loans.

Assistant Housing Minister Datuk Abdul Karim Rahman Hamzah, who expressed this view, noted that house buyers nowadays were facing difficulties in securing loans from end financiers or banks to finance their house purchase.

“This is an interesting new development from the Minister of Urban Wellbeing, Housing and Local Government (Tan Sri Noh Omar) which is unprecedented but I believe we cannot rush through this new scheme without going through the finer details of it,” said Abdul Karim yesterday.

Abdul Karim, who is also Assistant Youth and Sports Minister, was commenting on Noh’s announcement yesterday that eligible developers can now apply for moneylender licences to provide loan facilities of up to 100 per cent to property buyers.

Noh said his ministry, which would be issuing the licence under Money Lending Act 1951 (Amendment) 2011), will allow developers to provide housing loans to overcome difficulties faced by buyers in securing bank loans.

Despite being open about the government’s move, Abdul Karim feared that it might be a handful for developers if they were expected to be ‘bankers’ at the same time.

“We also need to study the impact of this new financing scheme on our existing banks. It is still too early to say whether this new scheme is good or bad but suffice to say that if it could help house buyers secure financing, I opine that it’s good.”

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