Banking Sector - Four local commercial banks to take part in government housing loan scheme

The country’s four largest commercial banks have agreed to cooperate with the government to offer housing loan scheme to civil servants. Finance Ministry Secretary-General, Datuk Dr Mohd Irwan Serigar Abdullah said the government is still at the discussion stage with the banks and a concrete decision would be announced before the end of this year.

He said that by outsourcing to the banks, it can save RM6bil annually, which is the amount allocated for housing loans to civil servants. However, they would still have to cover the difference in interest cost and the civil servants still pay 4%. Mohd Irwan said the local banks welcomed the government’s decision to cooperate with them as this represents a business opportunity for them. – Bernama