PUTRAJAYA: The Urban Wellbeing, Housing and Local Government Ministry has been instructed to further study the feasibility of its proposal to allow developers to provide housing loan for buyers.
Its minister Tan Sri Noh Omar said that in the Cabinet meeting today, the ministry was asked to conduct studies to evaluate the feasibility of the idea.
Among the aspects that will be studied, he said, included the interest rate and loan repayment period so that it does not burden the people.
“In addition, a study on providing clear and easy-to-understand guidelines for developers with moneylenders licences and house buyers will also be carried out,” he said in a statement today.
Noh said the policy is already in place and several developers have already been given licences to provide bridging loans as deposits for house purchases.
Noh had last week announced that eligible developers can now apply for moneylenders licences to provide loan facilities of up to 100 per cent to property buyers.
He said the move to allow developers to provide housing loans was to overcome difficulties faced by buyers especially in securing bank loans.
He also stressed that this suggestion was in accordance with the Moneylenders Act 1951 (Amendment) 2011 (Act 400) which comes under the ministry.
Noh’s proposal had come under scrutiny by several quarters, who had questioned its feasibility and effectiveness.