MBSB Bank processing up to RM6b of affordable housing loans

KUALA LUMPUR (April 17): MBSB Bank Bhd is processing up to RM6 billion in loans for affordable housing.

President and CEO of Malaysia’s second largest full-fledged Islamic banking by asset size Datuk Seri Ahmad Zaini Othman revealed that the applications included loans for the 1Malaysia People’s Housing Programme (PR1MA), 1Malaysia Civil Servants Housing Programme (PPA1M) and Federal Territories Affordable Housing (Rumawip), Bernama reported today.

"We expect to disburse all the loans this year," said Ahmad Zaini.

He was talking to the media after signing the Mortgage Guarantee Programme and Participation in My First Home Scheme with Cagamas SRP Bhd here today.

Ahmad Zaini said since the start of the loans programme for affordable housing, MBSB Bank had disbursed RM4.5 billion in loans for affordable homes comprising about RM2 billion for PPA1M, RM1.6 billion for PR1MA and about RM900 million for Rumawip, reported Bernama.

As for working with Cagamas SRP, he said MBSB Bank would obtain guarantee coverage from Cagamas SRP for its home financing portfolio to facilitate efficient capital management.

He also added that the bank would be able to provide up to 100% financing to young adults aged below 40 years and obtain guarantee from Cagamas SRP for 10% down payment.

On his part, Cagamas SRP director Datuk Chung Chee Leong said since the launch of My First Home Scheme in 2011, it had garnered participation from 23 financial institutions, with 7,920 loans of up to RM1.6 billion approved under guarantee by Cagamas SRP reported Bernama.

Cagamas SRP expected the number of loans approved under this scheme to grow between 10% and 20% this year.