Fund to help petty traders buy homes
17/07/2007 The Star

PENANG: Petty traders, fishermen and others who can afford to buy a house but do not have documents to prove their income will soon be able to rely on a revolving fund as collateral for housing loan applications.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said a proposal to set up the revolving fund would be tabled during the next Budget session.

The fund is meant to help those who face problems getting housing loans from banks because they cannot produce payslips. Nor Mohamed said this had been discussed with the players in the banking industry recently.

“The fund will serve as guarantee to banks. Banks do not have the confidence to approve loans to those who cannot show in black and white their monthly income.

“This revolving fund will serve like collateral to entice banks to approve loan applications submitted by certain quarters,” he told newsmen here yesterday.