News: Government To Allow PTPTN Defaulters To Get House Loans

Jul 12, 2019

Graduates with study loans and have been blacklisted by the Central Credit Reference Information System (CCRIS) from getting housing loans may soon be allowed by the government to obtain house loans. 

Housing and Local Government (KPKT) Minister Zuraida Kamaruddin said the proposal has been approved by the Education Ministry as well. The approval would give the National Higher Education Fund Corp (PTPTN) the power to stop such loan applications from being disapproved based on CCRIS’ list, reported The Malaysian Reserve.

The proposal, which is awaiting Bank Negara Malaysia’s approval, is expected to be implemented by October, she noted.

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“The entitlement will be applied for housing schemes which are being parked under my ministry, but we are also looking to expand it to loans for other housing projects,” Zuraida said.

The Minister, however, emphasised that the scheme would only apply for first-time homebuyers.

She also said that additional details will be announced in October, during the launch of a new youth housing scheme.

As part of its election manifesto, the Pakatan Harapan (PH) government removed around 429,945 loan defaulters from the Immigration Department’s travel blacklist, which reportedly resulted in PTPTN losing billions.

PTPTN meanwhile, has yet to come up with a repayment solution for its unpaid loans.

Zuraida, however, could not ascertain the number of defaulters that will be “whitelisted” due to the proposed removal of the ban on first-time homebuyers.

PTPTN chairman Wan Saiful Wan Jan said that the initiative is expected to be headed by a lead agency, to be chosen later by the government.

“I believe this is a good move, especially to support young people who are just about to start their lives and their careers.”

“We will assist in this programme and will support the government’s efforts to help young people to have their own homes,” he said.


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Victor Lim
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