Cagamas Launches Skim Saraan Bercagar

In this situation, the standard loan termination process will take place. Below are the options available to the next-of-kin.

Settle the outstanding Skim Saraan Bercagar Loan
The outstanding amount  will depend on the loan tenure. After settling the outstanding amount, the property will be passed back to the next-of-kin.

Borrower may surrender or terminate the agreement by settling or paying off the outstanding loan amount accumulated until that point of time.

No, the surviving joint-borrower would be able to reside in the property until death.

The full monthly payout will still continue to be paid to the surviving joint-borrower until death.

Yes, the partner will need to be joint owner of the property to be eligible.

Current owner would need to register the new owner with the Land Office to add the additional owner of the property. It will usually take about 1-2 months, subject to Land Office’s approval. 

In this circumstance, the joint borrowers will need to discontinue the Skim Saraan Bercagar Loan by selling the property to settle the outstanding loan amount at that point of time.

We allow for a flexible arrangement for the borrower to declare that their next-of-kin will be staying in the property or to rent out the property. However, in both instances, it must be due to specific circumstances such as medical or health conditions, with proof of medical certification.

The borrower would still need to name a nominee or next-of-kin before signing up for the Skim Saraan Bercagar Loan.

Upon the demise of the borrower (or last surviving partner borrower for a joint Skim Saraan Bercagar Loan), the loan would NOT accumulate any more interest. It will cease with the last disbursement made on the monthly payout.