BANDAR SUNWAY (Sept 8): The Government is allowing property developers to apply for money-lending licences to help homebuyers finance their property purchases.
 
Urban Wellbeing, Housing, and Local Government Minister Tan Sri Noh Omar said property developers could begin applying for the licence today. The interest is capped at 12% a year for borrowers with collaterals, and 18% for those without, according to him.

"This initiative is under my ministry. It is under the Moneylenders Act 1951 and Pawnbrokers Act 1972,"  Noh told reporters at the ASLI-National Housing & Property Summit here today.

He said the initiative was one way to reduce homebuyers' hardship in obtaining loans.

According to him, the scheme is open to others besides first-time homebuyers. He said the scheme could offer up to 100% house financing for between 10 and 20 years.

"Buyers who wish to finance the remaining portion of a house not provided by the bank, can also seek financing from this scheme," Noh said.

This is a win-win situation, he said. While people can buy homes, developers will also find a new and recurring income stream.