LPPSA-MBSB offers housing loans for joint applications

The main aim of the scheme is to help the borrowers, especially civil servants, get the highest loan amount compared to individual applications. - Bernama Photo
The main aim of the scheme is to help the borrowers, especially civil servants, get the highest loan amount compared to individual applications. - Bernama Photo

PUTRAJAYA: The Public Sector Housing Financing Board (LPPSA) is extending its loan facilities to joint applications between civil servants and private sector staff, said its chief executive officer Datuk Kamal Mohd Ali.

He said the main condition for these joint applications which include husbands-wives as well as parents and children, was that one of them must be a civil servant.

He said the initiative was the result of a collaboration between LPPSA and MBSB Bank Bhd. 

"The main aim of the scheme is to help the borrowers, especially civil servants, get the highest loan amount compared to individual applications, thus giving them the chance to own homes which are more comfortable.

“It will also help civil servants reduce their monthly commitments as the repayment amount is shared,” he said in a press conference held after the signing ceremony of a memorandum of understanding with MBSB Bank here.

Also present was MBSB Bank chief executive officer Datuk Seri Ahmad Zaini Othman.  The signing ceremony was witnessed by Treasury Secretary-General Datuk Seri Dr Ismail Abu Bakar who is also LPPSA chairman.

Kamal said with the MoU, both parties agreed to provide  loan facilities subject to the conditions and procedure agreed upon, including that MBSB Bank provide funds for applicants in the private sector.

Ahmad Zaini said MBSB Bank and LPPSA also offered two categories of loans, namely for completed houses and for those under construction.

He said MBSB Bank also offered facilities for the difference in the amount approved by LPPSA with the remainder of the price of the house.

“This means that if the price of the house is RM300,000 and the amount approved by LPPSA is less than that or about RM250, 000, the applicant can apply for the difference from us,” he said.

Ahmad Zaini said MBSB Bank had allocated RM500 million for the scheme which would be immediately implemented through the 'tawarruq' system for three years. - Bernama