MBSB Bank processing up to RM6bil affordable housing loans


  • Business
  • Wednesday, 18 Apr 2018

President and chief executive officer Datuk Seri Ahmad Zaini Othman(file picture) said the applications in the pipeline included loans for the 1Malaysia People

KUALA LUMPUR: MBSB Bank Bhd, Malaysia’s second largest full-fledged Islamic bank by asset size, is currently processing up to RM6bil in loans for affordable housing.

President and chief executive officer Datuk Seri Ahmad Zaini Othman said the applications in the pipeline included loans for the 1Malaysia People’s Housing Programme (PR1MA), 1Malaysia Civil Servants Housing Programme (PPA1M) and Federal Territories Affordable Housing (Rumawip).

“We expect to disburse all the loans this year,” he told reporters after signing the Mortgage Guarantee Programme and Participation in My First Home Scheme with Cagamas SRP Bhd here yesterday.

Cagamas SRP was represented by its director Datuk Chung Chee Leong, who is also the president and CEO of Cagamas Bhd.

Ahmad Zaini said since initiating the loans programme for affordable housing two years ago, the bank had disbursed about RM4.5bil in loans for this category comprising some RM2bil for PPA1M, RM1.6bil for PR1MA and about RM900mil for Rumawip.

On the collaboration with Cagamas SRP, he said the bank would obtain guarantee coverage from Cagamas SRP for its home financing portfolio to facilitate its efficient capital management.

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

The collaboration with Cagamas SRP would give an added feature for MBSB end financing for affordable housing.

Meanwhile, Chung said since its launch in 2011, My First Home Scheme had garnered participation from 23 financial institutions, with 7,920 loans amounting to RM1.6bil approved under guarantee by Cagamas SRP. — Bernama

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Business , MBSB , affordable , loans , Ahmad Zaini Othman

   

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