KUALA LUMPUR, August 1 - A total of 57,752 Housing Credit Guarantee Scheme (SJKP) applications worth RM 12.77 billion have been approved as of June this year.

Minister of Housing and Local Government, Nga Kor Ming said that the applications had increased drastically as compared to 23,569 applications worth RM5.9 billion in the previous year.

 SJKP also provides a guarantee of up to 120 percent of the house price, thus resolving the issue of deposit payments.

 “Last year, the government launched a new Housing Credit Guarantee Scheme initiative. Now, the guarantee is up to 120 percent of the house price.

 “Therefore, the issue of deposit payments can be resolved as the government’s guarantee for the first home ownership exceeds the price of the house. It covers aspects including renovations, which are also allowed. As a result, the total of approved applications last year had increased drastically”, he said in the Dewan Negara session.

 He said this in response to a question raised by Senator Mohd Hasbie Muda regarding the total of the applications for SJKP.

 Elaborating further, Nga Kor Ming said that the 34-year loan period is the maximum limit set by Bank Negara.

 Borrowers can solve their loan early to avoid burdening the second generation.