Fomca backs Nube's interest-free housing loan plan

PETALING JAYA  (April 20): The Federation of Malaysian Consumers  Associations (Fomca) backs the National Union of Bank Employees' (NUBE) plan of interest-free housing loans for its members in the middle- and lower-income segments, Bernama reported today.

Fomca deputy president, Mohd Yusof Abdul Rahman, said the banking industry should consider such a scheme as its corporate social responsibility.

He said this move will also encourage employees to work harder and, which in turn will benefit the banks.

Mohd Yusof said housing loan repayment made up a big part of most workers' monthly expenses and this scheme will lessen their financial burdens significantly.

The NUBE submitted this proposal to the Association of Banks in Malaysia via the Malayan Commercial Bank Association recently.

It also wanted the banks to provide full loans for houses costing between RM300,000 and RM500,000, and absorb legal and other fees.     

Mohd Yusof also suggested that private sector employers in other industries should consider such schemes for workers.

"If they could not provide interest-free housing loans, they should at least subsidise them like what the government is doing for its 1.6 million employees," he said.