1.Background
This programme is implemented through a trust account called the Housing Loan Fund for the lower income group. The fund was approved under the Financial Procedure Act 1957 (Amendment 1972) on 17 December 1975, which came into effect in 1976. This account with its rolling capital of RM70 million allows the lower income group to build their own houses or buy fully built low-cost houses.
This programme is implemented through a trust account called the Housing Loan Fund for the lower income group. The fund was approved under the Financial Procedure Act 1957 (Amendment 1972) on 17 December 1975, which came into effect in 1976. This account with its rolling capital of RM70 million allows the lower income group to build their own houses or buy fully built low-cost houses.
2.Purpose
The purpose of the housing loan scheme is to allow the lower income group without other borrowing means to build or buy fully built low-cost houses to improve their standard of living.
The purpose of the housing loan scheme is to allow the lower income group without other borrowing means to build or buy fully built low-cost houses to improve their standard of living.
3.Rationale
This scheme is an effort by the Government to help the lower income group to finance the cost of building a house so that they could at least have basic housing accommodation. With this facility the Government would be able to provide suitable and satisfactory housing accommodation to raise the standard of living of this group.
This scheme is an effort by the Government to help the lower income group to finance the cost of building a house so that they could at least have basic housing accommodation. With this facility the Government would be able to provide suitable and satisfactory housing accommodation to raise the standard of living of this group.
4.Approach
This loan scheme is implemented by the Ministry of Housing and Local Government and supported by the revolving fund of the Housing Loan Fund for the lower income group. It deals directly with the borrowers. The maximum loan amount is RM20,000 with the first RM10,000 being exempted from service charges while a four (4) per cent service charge is levied on the subsequent RM10,000.
This loan scheme is implemented by the Ministry of Housing and Local Government and supported by the revolving fund of the Housing Loan Fund for the lower income group. It deals directly with the borrowers. The maximum loan amount is RM20,000 with the first RM10,000 being exempted from service charges while a four (4) per cent service charge is levied on the subsequent RM10,000.
The target group for the scheme is households with a combined income of between RM500 and RM1,200 that are not eligible for any other loan facility.
5.Loan ConditionsSource of Loan Housing Loan Fund for the Lower Income Group
6.Eligibility for the scheme is subject to the following criteria:-
i.) Borrower: Malaysian citizen between the ages of 18 and 48 ii.) Maximum loan amount: RM20,000 iii.) Loan period: Between 5 and 20 years iv.) Service charge: First RM10,000 is exempted from service charge while a four (4) per cent service charge is levied on the subsequent RM10,000 v.) Combined household income: Between RM500 and RM1,200 vi.) Purpose: To build a new house with a cost not exceeding RM25,000 or to buy a fully built low-cost house according to the price of such houses in the area/location vii.) To build a house, the borrower must own a piece of land for the site to be used as security viii.) For fully built low-cost houses, the land and the house must be used as mortgage ix.) The borrower does not own a house x.) The borrower is not an employee of the government, nor of a corporatised bodyor financial institution. |
8. Further Information
Director Housing Loan Scheme Division Ministry of Housing and Local Government Level 3, Block K, Pusat Bandar Damansara PO Box 120979 50782 Kuala Lumpur Tel : 03-2094 7033 Fax : 03-2092 3214 |
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