Finology eyes top developers for its credit, loan-scoring services

Jared Lim - founder of Finology Sdn Bhd

PETALING JAYA: Property loans technology company Finology Sdn Bhd is expecting to provide credit and loan-scoring services to over 70% of Malaysia’s top 10 property developers within the next six months.

So far, it has signed up developers such as Paramount Corp Bhd, IJM Land Bhd, Hua Yang Bhd, Leadmont Development Sdn Bhd and Mitraland Group Sdn Bhd. Last week, Finology signed an exclusive partnership agreement with IQI Real Estate Sdn Bhd to deliver Loanplus services to the IQI network of over 3000 agents.

Loanplus is a loan score report that is capable of providing a review of an individual’s loan potential. This technology has been developed and refined over three years and now has various patents across the Asia-Pacific.

“We are holding ongoing discussions at a senior level with several key players in Government Affordable Housing, and there are positive signals indicating that our Loanplus Services will be utilized by many leading Affordable Housing in Malaysia, including Prima and Syarikat Perumahan Negara Bhd (SPNB),” said Finology Sdn Bhd founder Jared Lim (pic).

He said that once Finology provides solutions to the majority of the players in the affordable housing market, he is confident they can fulfil their commitment, and help the government house people in the 1,000,000 units for sale within the next 10 years.

“We might not be able to solve all the issues in affordable housing, but for loan checking, targeting qualified groups of buyers and identifying the best matched loans, Loanplus has the solution,” said Lim.

Currently, most government agencies such as Prima and RumahWIP are stuck with unsold units of affordable housing, even though the demand is clearly there, said Lim.

He said that it is common for affordable housing projects to be over-subscribed by as much as 50 persons for every available unit.

“This happens because the current process of getting buyers into affordable government housing in Malaysia is broken. A key reason for this is because balloting is done randomly without any way to pre-qualify the buyers for a loan,” said Lim. After successfully balloting for a house, buyers get the opportunity to buy the property.

Yet, many fail to secure a loan. And with loan rejection rates with banks running at over 90% for affordable housing projects, the balloting process and the loan application processes have to be repeated several times to sell all the available units.

This is hugely inefficient, costly and frustrating. So far, around 200,000 Malaysians have purchased government affordable homes since 2016. The target for this period was 606,000.

Via Loanplus, Lim said that they have been able to cut the time of the affordable housing journey in half.

There will also be only minimal repeat balloting as the overall process, thus saving significant time and resources for the buyers, agencies, developers and the bankers.

He added that it is not all gloom and doom for the unsuccessful applicant.

Loanplus also provides advice and suggestions on improving loan scores. As the financial status of the buyers improves, and they ballot again, Loanplus is able to provide the best matched loans and assist with the loan application process.


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