Subsidized Loan by State Government of Sabah

For civil servants serving in the State Government of Sabah.

Guidelines, terms & conditions under the loan scheme as stipulated in Ministry of Finance’s circular letter – KEW(s) 500-4/1/Klt.5 issued on 3rd December, 2013, which is effective from 3rd December 2013.

Maximum Loan

100% of cost of property/selling price (subject to applicant's eligibility).

Maximum loan is RM400,000.- subject to confirmation of entitlement by the Sabah State Government.

Maximum Repayment Period

30 years subject to age plus repayment tenure not exceeding 70 years.

Subsidized Interest Rate

At 3% per annum on monthly rest.

Frequently Asked Questions

  1. Can we utilize the balance of our Government loan entitlement to purchase a 2nd property?

    Yes, you may apply but subject to Government’s approval.

  2. What is your maximum loan period?

    Our maximum loan period is 30 years subject to age not exceeding 70 years whichever is earlier.

  3. If we have a loan with other Bank, can we transfer our loan to Borneo Housing utilizing our Government subsidised loan?

    Yes, you may but subject to Government’s approval.

  4. If I am building my own house using direct labour, can I request for advance payment in order to commence the construction of the building?

    No, we do not allow payment in advance. Release of loan upon completion of documentation can only be made progressively based on our Company’s Progress Report on construction works achieved.

  5. If I apply for Borneo Housing loan, can the legal fees be paid from the loan approved?

    No, we do not allow the legal fees to be deducted from the approved loan and other disbursements are to be paid by you.

  6. My land is situated at the Kampong Reserve, is it acceptable as a security?

    Since the land belongs to the Community for e.g. the Kampong itself and not individual, it is therefore not acceptable to us as a security for loan facility.

  7. I am in the State Government service and my wife is a housewife and I intend to apply for Government subsidise loan, can I apply to include my wife’s name in the loan?

    Under the Government Housing Loan Scheme, both must be in the State Government service.


* The Company reserves the right to vary the above information, terms & conditions from time to time without assigning any reason whatsoever.