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Terengganu allocates RM50m for interest-free home loans

Terengganu allocates RM50m for interest-free home loans
Written by Publishing Team

lease: If the banks reject your housing loan application for an affordable house in Terengganu, fear not because the state government has allocated RM50 million annually in interest-free loans.

The i-Rahman scheme, launched by the state on October 13, will help 709 families of the B40 group own homes each year.

“Most of the people in the low income group in Terengganu will not meet the requirements for commercial bank loans,” said the head of the Local Government, Housing, Health and Environment Committee Dr. Elias Razak. the sun.

Most of them do not have a fixed income. How can they show their payroll to the banks if they don’t have full time jobs? “

There are two types of loan facilities under Rahman. One is for buying homes from private developers called “Rumah Mampu Milik Terengganu” (RMMT) while the other is aimed at enabling borrowers to build homes on their own land under the title “Rumah Mesra Rakyat Darul Iman” (RMR Rahman).

“Land owners can apply for the RMR Rahman scheme for which the state government will work with Syarikat Perumahan Nasional Berhad (SPNB) for home construction.

“SPNB, which is under the Ministry of Finance, has experience building affordable housing nationwide.”

The unit price of RMR Rahman is RM75,000, but those who qualify for this program will only need to repay RM55,000 over 15 years. The remaining amount of RM20,000 will be supported by the ministry.

Each unit RMR Rahman is a 1,000 sq ft single story home with no parking space. It has three bedrooms and two bathrooms. A deposit of RM3,500 is required for each order.

Those who wish to purchase RMMT property but do not meet the requirements of the bank can apply for the i-Rahman scheme. They must submit loan rejection letters from at least two banks.

This is for those who have the money to pay their monthly loan installments but are renters. “They can’t get loans because they don’t have payment statements to show,” Elias said.

The maximum unit rate for RMMT is RM80,000 and loan repayment is RM266.70 per month over 25 years.

The state government allocates RM50 million each year from its budget to this initiative, with 30% or RM15 million for Rut Rahman Rehman and 70% or RM35 million for RMMT home loans.

“We estimate that 272 RMR Rahman units are built annually and 437 apply for RMMT.”

The financial management of the i-Rahman plan will be carried out by Perbadanan Memajukan Iktisad Negri Terengganu, a state government agency.

Our loans differ from commercial bank loans because there are no additional fees. There are no interest or service fees. Eligible people pay only the amount borrowed for the house.

Although some banks are considered Sharia compliant, they raise the prices of homes to sell to borrowers. We don’t do that.”

Elias said that this initiative is one of the solutions to overcome the social and economic problems in the country.

“Since Terengganu’s per capita income is different from other states, this is our way of helping people own homes.”

According to the Department of Statistics, the average monthly salaries and wages for the state in 2020 decreased from RM 2,766 in 2019 to RM 2,424.

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