Cabinet wants review on moneylending developers

THE Cabinet has instructed the Housing and Local Government Ministry to relook its decision to allow property developers to offer loans to house buyers. Its minister Tan Sri Noh Omar said they will ensure developers, who have been offered moneylending licences under the scheme, do not abuse the system.

This comes following a public outcry over shadow banking that allows developers to impose interest rates of between 12 and 18 per cent per annum to those unable to secure loans from banks.

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