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.