SHAH ALAM, Aug 15 — The Selangor State Development Corporation (PKNS) and Bank Islam Malaysia Bhd (Bank Islam) have signed a memorandum of understanding (MOU) to offer Islamic housing loans based on the Tawarruq principle.
PKNS chief executive officer Datuk Mahmud Abbas said the MOU aims to make it easier for customers to get loans as Bank Islam offers various loan facilities for the property sector, from projects in development to completed projects.
“The loans offered by Bank Islam are up to 35 years or until the customer has reached 70 years old.
“Customers also do not have to worry about other charges as they are all included in the package,” he told reporters after the signing ceremony.
Mahmud said PKNS is aware of society’s concerns over home ownership amid economic uncertainties.
“That is why PKNS took the initiative to work with banks to facilitate home ownership. Hopefully with this, more people can buy homes built by PKNS,” he added.
Mahmud said PKNS is targeting a gross development value (GDV) of RM600 million this year, depending on market conditions.
“PKNS is very careful in launching projects as it needs to study the market and economic conditions first, we hope to launch six projects this year with GDV of RM600 million,” he revealed.