KUALA LUMPUR, Sept 13 ― Bank Islam Malaysia Bhd (BIMB) is unperturbed over a proposal for housing developers to offer unsecured home loans at interest rates comparable to credit cards. 

"We are unlikely to be affected if it were to be implemented and we will continue to focus on the same target market which is the middle income group.  "Our approval rate for home financing has so far been equivalent to last year's and there is no undue concern that we have been rejecting home loan applications unless if they were for high-value properties. 

"Our approval rate last year was 70 per cent and it will be slightly better this year as we have reached 71 per cent so far,” BIMB deputy chief executive officer Khairul Kamarudin told reporters after the launch of Bank Islam's Visa Infinite Business Credit Card-i by Managing Director Datuk Seri Zukri Samat here, today. 

Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar recently announced the introduction of the initiative that enables property developers to give out loans to buyers at an interest rate of 12 per cent with collateral and 18 per cent without collateral. 

He said that the move is intended to assist Malaysians who are unable to get a full housing loan from banks or those who may only be given a partial housing loan. 

However, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the proposal was never discussed by the cabinet and Noh has since been told to brief his fellow Cabinet members on the suggestion. ― Bernama