Company:
Financial Assistance
Home purchasing loan guide for civil servants (LPPSA)
LPPSA stands for “Lembaga Pembiayaan Perumahan Sektor Awam”. LPPSA is a statutory body tasked with administering housing loans for civil servants in the public sector. There are seven types of LPPSA loans to cater to different financing needs. Every loan applicant must fill up an application form to initiate the loan application process. Eligibility reviews for LPPSA loans are conducted based on the applicant’s salary statement, without considering any external commitments such as other outstanding bank loans.
Hence, LPPSA’s loan eligibility criteria is relatively lenient compared to other loan providers, allowing them to qualify for a loan via LPPSA where they would not have qualified for a typical private sector loan otherwise. More information regarding LPPSA loans can be found on LPPSA’s very own official website: http://www.lppsa.gov.my.
According to the mandate, only those working in the government sectors are allowed to apply. This includes:
- Civil servants
- Police & Army
- Statutory body (ie. SME Corp, MCMC, Elections Commission, etc)
- Local governments
- Members of the Administration
- Federal Court / Appeal / High Court Judge
- Member of the State Council and the House of Representatives
- The Speaker of the House of Representatives
- Member of the State Legislative Assembly
This scheme prioritises residential titled and government owned properties. Properties that go under the category of commercial titles are not covered.
The LPPSA scheme provides all civil servants a 100% full loan. However, there are other terms that has to be satisfied before one is eligible.
Applicants must fulfil these conditions:
- Malaysian citizen
- Is Muslim and Malay
- A permanent staff in any civil government body.
- Has less than 55% in remaining deduction.
- Not a bankrupt
- Not blacklisted in CCRIS/ CTOS
Yes the LPPSA scheme is fully shariah compliant, using the Akad Al-Istina’ principle. You can find out more here.
No. One of the benefits of the LPPSA scheme is that it does not require guarantor or collateral from the applicant.
The LPPSA scheme is for a maximum of 25 years and with an interest rate between 3 – 5% per annum.
The LPPSA scheme used the ANGKASA Salary Deduction System (SPGA). For increased efficiency, salary deduction is integrated with ANGKASA’s Credit Report System and RAM Credit Info (SPeKAR) to assess individual credit levels.
