Resolve high rejection rates for home loan applications, Zeti urged

GEORGE TOWN: The Penang government has urged Bank Negara Governor Tan Sri Zeti Akhtar Aziz (pix) to resolve the issue of high rejection rates for home loan applications.
Penang housing committee chairman Jagdeep Singh said a letter will be written to Zeti to ask for an appointment between him, Chief Minister Lim Guan Eng and her.
The issue was serious as the matter did not only affect Penang but the entire country, he said, adding banks were now “too rigid” and “too strict” in approving home loans and that the terms were imposed equally on all applicants.
He said a majority of those whose applications were rejected came from the low and low-medium income group.
“How can you compare someone who wants to buy a RM50,000 home against another who wants to buy a RM5 million property?
“I hope Bank Negara can spare some time for us to discuss this issue,” he told a press conference today adding the letter will be sent on Sept 1.
Jagdeep earlier attended a pray ceremony at the new Sri Ayappan Seva Samajam Temple in Jalan Sri Bahari here.