Malaysia uses property crowdfunding as the answer to banks rejecting loans

Property crowdfunding offers an alternative for home buyers after banks rejected housing loan applications.

Malaysia’s government is turning to the wealth of the masses, instead of reticent banks, to help solve a $4.8 billion property overhang.

Property crowdfunding offers an alternative for home buyers, Finance Minister Lim Guan Eng said on Friday, after he warned banks that he may take action against them for rejecting housing loan applications without reason.

“But if the banks refuse to lend, it will be not only just an option,” he said in Kuala Lumpur. 

“It may be more than that.”

The crowdfunding model lets Malaysians bypass banks for loans and connect directly with investors. 

Together, equity crowdfunding and peer-to-peer platforms have so far