Bank Islam plans to hand over 30 homes under asnaf homeownership financing scheme this year

Mohd Muazzam Mohamed (Photo by Sam Fong/The Edge)

Mohd Muazzam Mohamed (Photo by Sam Fong/The Edge)

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KUALA LUMPUR (May 9): Bank Islam Malaysia Bhd (BIMB) plans to hand over 30 houses under the Asnaf Personal Financing-i facility scheme this year, and will also continue to work towards expanding the scheme nationwide, together with interested State Islamic Religious Councils.

Chief executive officer Mohd Muazzam Mohamed said the bank pioneered a homeownership financing scheme for the asnaf group (those who are eligible to receive zakat payments) in July last year.

The scheme was implemented via a joint venture with the State Zakat Management Agency, with both parties funding half of the house financing.

"Through this scheme, asnaf with a fixed income of below RM1,500 per month can own a house built on their land or with the landowner's permission.

"Under the pilot project in collaboration with the Kedah State Zakat Board, two houses were handed over to eligible recipients in February," Mohd Muazzam said.

He said BIMB started the Bank Islam Housing Aid Programme in 2008 to provide housing for the most affected and deserving group.

"It began in Kelantan, followed by Terengganu, and this programme was later expanded nationwide. To date, it has benefitted more than 300 asnaf with an allocation of more than RM9 million," he said.

Last Thursday, its corporate social responsibility arm, AMAL Bank Islam, handed over 11 housing units to selected asnaf under the "Baiti Jannati" or "My Home, My Paradise" programme, in partnership with the Kuala Lumpur City Hall (DBKL) and the Ministry of Federal Territories.

The programme entails the allocation of AMAL and Zakat funds amounting to more than RM600,000 to buy rented houses from DBKL for 11 asnaf families who are registered as "urban poor" under the government's e-Kasih system, the poverty eradication portal.