Bank Simpanan Nasional (BSN) is targeting at least RM6 billion loan disbursement for its Youth Housing Scheme by July next year.
Initially launched in July last year, BSN said the scheme is aimed at young married couples between the age 25 and 40 years old with a household income not exceeding RM10,000 per month. It is designed to aid those in this category to own a home in the current turbulent economic environment.
Deputy chief executive Frederick Siew said that, as at October this year, the scheme had managed to secure 4,000 loan submissions valued at almost RM1 billion, with an approval rate of 50 per cent.
“We have approved 2,000 cases amounting to RM500 million. To-date, we have disbursed RM200 million as projects have different stages of completion,” he told the press during the recent announcement of its collaboration with developer Oriental Interest Bhd (OIB).
The tie-up was for the second phase of the Seroja Hills Condominium project, which is being undertaken by OIB at Bandar Baru Salak Tinggi in Sepang.
With gross development value of RM84 million, the project features 256 condominium units, each offering a built-up area of 1,096 sq ft priced from RM320,000.
The project is slated for completion in mid-2019. Siew said BSN was also looking into collaborating with more reputable property developers to promote the Youth Housing Scheme.
It was also recently reported by Bernama that the bank is considering extending the Youth Housing Scheme upon the completion of the two-year programme.
BSN senior vice-president and head of distribution Akhsan Zaini said the bank will discuss the potential extension of the scheme with the government once the timespan for the scheme has expired, as this is primarily a government-initiated programme.