Bank Islam pioneers housing scheme to help those in need

The bank aims to hand over 30 units of houses in partnership with interested state Islamic religious councils  

As reported in The Malaysian Reserve, Bank Islam Malaysia Bhd (BIMB) aims to hand over 30 units of houses under the Asnaf Personal Financing-i facility scheme in 2021, and it plans to work with interested state Islamic religious councils in expanding the scheme nationwide.  

Mohd Muazzam Mohamed, CEO of BIMB, said the bank introduced a home ownership financing scheme for the asnaf group in July last year. The asnaf group is a party eligible to receive zakat aid, a charitable practice that requires all capable Muslims to donate a fixed portion of their wealth to the needy.  

The scheme was established through a joint venture with the state zakat management agency, where both organisations will invest half of the home financing.  

“Through this scheme, asnaf with a fixed income of below MYR1,500 (USD364.52) per month can own a house built on their land or with the landowner’s permission,” Mohd Muazzam said. “Under the pilot project in collaboration with Kedah State Zakat Board, two houses were handed over to eligible recipients in February.”  

He added that BIMB initiated the Bank Islam Housing Aid Programme in 2008 to supply housing for the most affected and deserving group.  

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“It began in Kelantan, followed by Terengganu, and this programme was later expanded nationwide. To date, it has benefitted more than 300 asnaf with an allocation of more than MYR9 million,” he said. 

Last Thursday, AMAL Bank Islam, BIMB’s corporate social responsibility arm, handed over 11 units to selected asnaf under the “My Home, My Paradise” programme, in collaboration with the Ministry of Federal Territories and the Kuala Lumpur City Hall (DBKL).  

The programme allocates AMAL and zakat funds totaling up to more than MYR600,000 to buy rented houses from DBKL for 11 asnaf families registered as “urban poor” under the government’s poverty eradication portal.