With Malaysia’s workforce increasingly consisting of gig and freelancers, many self-employed individuals are denied access to housing loans due to the absence of formal payslips.
Since 2008, over 76,000 Malaysians have secured RM17.9 billion in home loans from various Financial Institutions through backing by Syarikat Jaminan Kredit Perumahan Berhad Berhad (SJKP), a company wholly owned of the Minister of Finance Incorporated (MOF Inc.), providing government-backed guarantee schemes for gig workers and petty traders.
Their earnings whether sourced from ride-hailing, freelancing, online businesses, or night market stalls often fall outside formal payroll systems. As a result, banks classify them as risky borrowers, even when their incomes are genuine.
Despite stable incomes and good credit records, these workers often find their home loan applications rejected because banks can’t verify their earnings through formal payslips. This has left communities such as ride-hailing drivers, online sellers, hawkers, and small entrepreneurs struggling to own their first home.
This is where SJKP steps in – not as a lender, but as a guarantor. Once a housing loan is conditionally approved by a participating bank, the application can be submitted to SJKP. If the borrower qualifies, SJKP guarantees the loan covering more than 100% of the house purchase price giving banks the confidence to approve loans they might otherwise reject the application.
“The 2025 Budget has allocated an additional RM10 billion in guarantees under SJKP for 2025, which will help more gig workers, small business owners, and informal sector workers in obtaining housing loans. This is expected to benefit over 20,000 Malaysians to own their first home,” said Datuk Seri Amir Hamzah the Minister of Finance II.
The maximum guarantee financing cover is up to RM500,000 and may involve more than 100% guarantee coverage of the house purchase price i.e. including MRTA/MRTT, Fire Insurance, legal and valuation fees. The entire process is handled through the various participating banks.
In a landscape where B40 and M40 Malaysians increasingly rely on informal income sources, the scheme provides a vital lifeline to those working hard and earning steadily but lacking official proof of income. While no payslip is required, borrowers can still demonstrate repayment capacity; typically, through bank statements, tax filings, EPF statements or e-wallet transaction histories.
The government has set a goal of increasing homeownership to 70% by 2030, and initiatives like SJKP play a crucial role in achieving this, especially among underserved segments.
Since the programme’s inception, billions have been allocated annually by the government to continue this beneficial scheme. As housing demand rises and the gig economy becomes a permanent feature of Malaysia’s workforce, SJKP’s importance continues to grow.
If your home loan application has been declined due to informal income, you may speak to your preferred banker about applying under SJKP. A full list of participating financial institutions is available at SJKP’s website; www.sjkp.com.my.
