Zuraida: Banks have final say on housing loans for PTPTN borrowers

Banks will make the final decision on whether housing loan applications should be approved for National Higher Education Fund Corporation (PTPTN) borrowers, said Housing and Local Government Minister Zuraida Kamaruddin.

She said this was despite the government's move to exempt PTPTN loan borrowers who have been named in the Central Credit Reference Information System (CCRIS) from being blacklisted by banks.

The CCRIS lists all PTPTN loan borrowers who need to make a repayment 12 months after the loan period expires.

"The banks themselves would decide whether they want to approve loan applications (from PTPTN borrowers).

"But as I have said, fresh graduates have high creditworthiness, as they have only secured a job, and they don't have other loans to service as they still haven't bought a house, a car and such.

"So, their creditworthiness is still a lot that can be used (for housing loan approvals)," she told reporters during a Fund My Home programme in Putrajaya earlier today.

Zuraida was responding to a reporter's question on risks that might be faced by banks in approving housing loans for those who fail to service their student loans.

Elaborating further, Zuraida said the listing of PTPTN borrowers on CCRIS is a blanket policy which is not based on the creditworthiness of PTPTN borrowers.

Meanwhile, in her speech at the event, Zuraida also advised fresh graduates to refrain from spending their money on vehicles first.

Instead, she stressed, the youth should invest in purchasing real estate.

"We want to make the young people asset owners. This is a culture that they should start (embracing) now, and it will benefit them in the long run," she said. - Mkini