Penang Govt not in favour of developers providing loans

lim guan engBUTTERWORTH: The DAP-led Penang government is not in favour of housing developers being given money-lending licences and will not approve projects if developers offered housing loans as well, said Penang Chief Minister Lim Guan Eng.

He said the responsibility of housing developers was to build houses and not provide housing loans to buyers at exorbitant interest rates.

“I will instruct the Penang Island City Council and the Seberang Perai Municipal Council not to approve housing projects if the developers also offer loans to buyers,” he told reporters after launching a “Zero Waste” campaign in Taman Bagan Lalang here today.

He was commenting on the proposal by Urban Wellbeing, Housing and Local Government Minister Noh Omar on Thursday for housing developers with “deep pockets” to be given money-lending licences as well so that they could also offer loans to buyers who had difficulty securing loans from financial institutions.

Noh said it would be a “win-win” situation in that developers could help meet demand for affordable homes and the people would be able to purchase houses.

The interest rates mentioned were 18 per cent per annum for 100 per cent loans and 12 per cent for 90 per cent loans.