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Banks To Continue Providing Housing Loans To Qualified Applicants

Last update: 20/11/2017

KUALA LUMPUR, Nov 20 (Bernama) -- The Association of Banks in Malaysia (ABM) has given its assurance that its member banks, comprising commercial banks operating in Malaysia, have and will continue to provide home loans to all eligible borrowers.

"Commercial banks are in the business of lending and will continue to provide financing to qualified applicants," it said in a statement today, in response to a recent media report on purported loan restrictions.

ABM said the allegation that banks were imposing strict rules on house buyers who had applied for loans was not true.

"In determining the eligibility of an applicant, banks take into consideration various factors such as the applicant's capability to service the loan," it said, adding that applicants who met the banks' criteria would not be rejected.

The association said this was manifested by the 8.8 per cent increase in the outstanding housing loans by the banking system as at end of September 2017.

"Financing remains available for eligible borrowers, with 71 per cent of housing loan borrowers being first-time owners of affordable homes," ABM said.

ABM-member banks have been and will continue to remain prudent and responsible in providing housing loans to eligible house buyers, it added.

The association has 27 members, comprising commercial banks operating in Malaysia and their main objective is to promote a sound banking system in Malaysia in cooperation and consultation with the regulators, ABM said.

-- BERNAMA