BTN to launch micro housing loan by end of February
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State-run mortgage lender Bank Tabungan Negara (BTN) is expected to launch micro housing loan for lower income group by the end of Feb, its president director said.
“We will launch it around end of this Feb. It is a special loan for lower income group who do not have regular income,” Maryono said at the Vice Presidential office here on Monday.
According to Maryono, the lower income group includes those with regular income and those without. The first group enjoys the governments housing finance liquidity (FLPP) and interest rate subsidy.
The group without regular earnings would be supported with micro housing loan to afford a house.
The bank would impose interest rate as low as 7-9 percent, he said.
Currently, some 6.3 million workers are categorized into lower income group, which include those who do not have regular earnings.
Public Works and Housing Minister Basoeki Hadimuljono said that housing provision for lower income group is targeted to reach 700 thousand houses in 2017, up from 516 thousand in 2016.
Basoeki added that the houses would be built at state properties, and access to the locations would also be improved to cut the transportation costs.
The minister added that micro housing loan would be given to workers with monthly earnings from Rp1.2 million to Rp2.6 million.
Questions & Answers
Q.What is the primary purpose of the new micro housing loan?
What is the primary purpose of the new micro housing loan?
The micro housing loan is designed to help lower income individuals, particularly those without regular earnings, to afford a house. It aims to support a group not covered by existing government housing finance schemes.
Q.What interest rate will be applied to these new micro housing loans?
What interest rate will be applied to these new micro housing loans?
The bank intends to impose an interest rate as low as 7-9 percent for the micro housing loans. This is specifically for those without regular earnings.
Q.Which income bracket is eligible for the micro housing loan?
Which income bracket is eligible for the micro housing loan?
The micro housing loan will be provided to workers who have monthly earnings ranging from Rp1.2 million to Rp2.6 million. This targets a specific segment of the lower income group.
Q.What is the housing provision target for the lower income group in 2017?
What is the housing provision target for the lower income group in 2017?
The government's target for housing provision for the lower income group in 2017 is 700,000 houses. This is an increase from the 516,000 houses provided in 2016.
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