FINANCE DIVISION

Q1. Who is eligible to apply for housing financing?

IIUM Staff serving under permanent status has served for at least one year and has been confirmed in service.

Q2. What is the existing package under housing financing?

Currently, the University offers a subsidized housing financing scheme with the Financial Institution. To facilitate the process of housing financing, IIUM has appointed 4-panel financial institutions. Basically, the fund is originating from the respective Financial Institution itself.

The list of 4 panel bank are as follows:

a) Bank Muamalat Malaysia Berhad

b) Bank Islam Malaysia Berhad

c) AmBank Islamic Berhad

d) Bank Kerjasama Rakyat Malaysia.

Q3. What is the financing rate under the subsidized housing financing scheme?

The financing rate is 4% per annum based on reducing balance. IIUM will subsidize the profit rate for portions exceeding / beyond 4%.

For example, if the bank approved rate at 4.90 %, thus IIUM will subsidize the rate of 0.90 %

Q4. What are the basic qualifying requirements for an officer to apply for housing financing?

i. The monthly instalment repayment amount does not exceed 60% of the total basic salary and monthly allowance. 

ii. The total deduction in payslip including deductions for housing financing does not exceed 80% of the total basic salary and monthly allowance.

Q5. What is the maximum limit of eligibility for housing financing?

The range amount of approval are as follows:

Financing Amount Entitlement for Housing

Q6. I have obtained financing approval from the panel bank for the Subsidized Financing Scheme with Financial Institution, what should I do?

After securing the financing approval from the panel bank, you need to fill up the IIUM Financing form to enjoy the subsidy financing charges for the monthly instalment. You may liaise with our Financing Unit, Finance division or ::: Click Here to Download the form ::::

Q7.How did the subsidy financing charges work under the Subsidized Financing Scheme with Financial Institution?

The Financing Unit, Finance Division will calculate the subsidy portion according to the staff eligibility and University will pay part of financing cost charges for the monthly repayment amount to the bank. 

Meaning that the salary deduction for staff will be lower than the amount repayment stated in the bank offer letter. Next, the University will do the payment as per the amount stated in the bank offer letter.

Q8.Can an officer make a second housing financing application?

Yes, the officer is allowed to make two times facility/applications over the service period. The new application can only be approved provided the first financing facility has been settled. 

Q9. What is the maximum repayment period under a subsidized housing financing scheme?

Q10. I just realized, the approval amount and repayment period approved by the panel bank is beyond my entitlement that specified in IIUM eligibility and conditions. Does it mean my application will be rejected by the Finance Division?

Your application will not be rejected. However, the finance division will calculate the subsidy portion up to the maximum entitlement only. 

University subsidizes the term charges imposed by financial institutions over and above the rate of 4% for amounts up to the maximum eligibility. Any amount above the eligibility will be charged at a bank rate. 

If the financing repayment period is more than the eligible period (35 years), the subsidy will only be applicable up to the eligible period. Staff is responsible for the full rate after the period ends. 

Q11. My current entitlement for financing amount is RM 750,000 and 10 years ago I already utilized my first house facility with the financing amount of RM 250,000. Does it mean my 2^nd application entitlement will be RM 750,000? 

No. Your entitlement will be the difference between “current entitlement” and “1^st Financing amount approval”. In your situation, you are now entitled to up to RM 500,000 for 2^nd application approval.

Q12. The bank officer advises me to submit a financing application through a joint name with my husband but he is not IIUM staff, can I apply for the subsidy scheme under this situation?

Yes, you can apply the subsidy scheme under joint name financing circumstances provided the repayment of the instalment shall be made by way of IIUM salary deduction.

Q13. If I have further questions, which unit should I need to refer to?

You may liaise with our Financing Unit, Finance division for further explanation.

Phone No: 03-6421 3870

Last Update 6th December 2021