Noh to explain proposal for developers to offer home loans on Wednesday

The Urban Wellbeing, Housing and Local Government Minister said the proposal was made as a suggestion to help developers who had been lamenting over an increase in the percentage of completed but unsold homes.

Noh said the proposal was not a new thing as several developers had already been given the licence to offer the loan facility.

In fact, he said housing developers were encouraged to apply for money-lending licence as there was a provision for that under the Moneylenders Act 1951.

"I was planning to make official announcement of the proposal as some developers might not be aware of it. However, if I explain to the Cabinet tomorrow and they decide that it is not implementable as it may bring about (negative) impact to the economy, I will accept the decision.

"And if the Cabinet also decides that the licence given to those developers should not be continued, then the licence will be revoked," he told reporters after attending the Korban Perdana programme here today.

Last Thursday, Noh proposed the initiative that enables property developers to give out loans to buyers at an interest rate of 12 per cent with collateral and 18 per cent without collateral, which received mixed reactions from various quarters.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi was also reported as saying that the proposal was never discussed by the Cabinet.