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Cuepacs to scrutinise housing loan terms

Posted on October 5, 2012, Friday

GEORGE TOWN: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) will give its approval after it has reviewed the housing loan’s terms and conditions of the appointed banks, which will manage the civil servants’ home purchase.

Cuepacs president, Datuk Omar Osman said a lot of matters needed to be scrutinised to ensure the civil servants would not carry excessive burdens on their loans.

“The government used to provide us the loan, now we have to seek loans from banks, so we must scrutinise all aspects like insurance puchase, developer insurance, commission and bank procedures so as to avoid future problems,” he told reporters after attending a seminar on popularising the civil service sectors, here yesterday.

He asked the appointed banks to provide 100 per cent financing of the loan so that buyers would not have to pay between 10 and 20 per cent deposit and the house should be completed before the purchase made.

On Wednesday, Finance Ministry secretary-general Datuk Dr Mohd Irwan Serigar Abdullah said four of the largest local banks agreed to cooperate with the government in offering the housing loan to civil servants.

Omar said the matter was still under discussion between the government and the banks before deciding the outcome by year-end.

He also asked the government to revise the loan interest rate of four per cent, which was high to civil servants, who had served less than 10 years and earning below RM3,000 monthly.

He argued that the rate was no longer relevant as the price of houses had gone up significantly.

He proposed to the government to build more housing estates, which were affordable to civil servants, in Klang Valley areas, Shah Alam and Sungai Buloh with a distance of up to 70 kilometres from home to the workplace for easy commuting. — Bernama

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