'More than half of Selangor home loan applications rejected due to PTPTN blacklist'

The Selangor Land and Housing Board has applied to Bank Negara Malaysia to ‘liberalise’ the blacklist for housing loans in the state.

This was because more than half of those who had their home loan applications rejected were due to their debts with the National Higher Education Fund Corporation (PTPTN).

Selangor housing, building management and urban settlers exco, Datuk Iskandar Abdul Samad said the issue is problematic for many potential house buyers, especially those involving the state’s affordable housing projects, Rumah Selangorku.

“In one project, there can be some 60 percent of applications rejected. From the amount, half were due to PTPTN loans.

“In the Standing Committee meeting, we suggested for the PTPTN blacklist to not be included in the Central Credit Reference Information System (CCRIS).

“Therefore, through the Board we have written to Bank Negara requesting them to exercise leniency on the blacklist,” he told the State Assembly sitting today.

Iskandar was responding to Sri Andalas assemblyman Dr Xavier Jayakumar who wanted to know if the state government has discussed the issue of problematic home loan applications with the central bank.

Meanwhile, Iskandar also said the committee would propose a state exco paper on action to be taken against developers who refuse to build Rumah Selangorku despite getting the approval to do so.

He said, there were 14 projects approved under the Rumah Selangorku initiative that comprises 20,008 housing units. So far, one project is done, 11 are still under construction and two are yet to be developed.