HCGS Malaysia: How the Housing Credit Guarantee Scheme Helps If the Bank Rejects You

If a bank has turned down your home loan application because you do not have a payslip, the Housing Credit Guarantee Scheme (HCGS), run by Syarikat Jaminan Kredit Perumahan Berhad (SJKP), is the government safety net built precisely for you. SJKP acts as a guarantor between you and the bank, removing the payslip barrier so self-employed Malaysians, gig workers, freelancers, and informal-sector earners can still qualify for a mortgage.

What Is the HCGS and Who Runs It?

SJKP Berhad is a government-owned company under the Ministry of Finance. Its single purpose is to guarantee housing loans for Malaysians who have the repayment ability but cannot satisfy the standard income-documentation requirements that banks set for salaried employees.

Under the HCGS, SJKP issues a guarantee to the participating bank covering more than 100 percent of the financing amount, including ancillary costs such as the mortgage reducing term assurance (MRTA/MRTT), legal fees, and valuation fees. Because the bank’s risk is backstopped by the government, it can approve your loan even without a payslip.

No fee is charged to you by SJKP. The scheme is entirely free for borrowers.

Two Variants: Standard HCGS vs HCGS Madani

SJKP currently runs two flavours of the scheme. The Madani variant was introduced under the Madani government as a first-home affordability measure.

Feature	Standard HCGS	HCGS Madani
Maximum financing	RM500,000	RM360,000
Financing margin	Up to 100% of property value	Up to 120% of property value or RM360,000, whichever is lower
Loan tenure	Up to 35 years	Up to 35 years
Property type	Residential (completed, under construction, auction, secondary market)	Residential, first purchase only
First-time buyer requirement	Not mandatory	Mandatory
SJKP fee to borrower	None	None

The 120 percent margin under Madani is notable: it can absorb your down payment, legal fees, MRTA, and even a small renovation budget in a single financing package, which is a significant advantage if you have limited cash savings.

Who Is Eligible?

Basic Eligibility

According to SJKP’s official eligibility page (sjkp.com.my), the criteria as of 2025 to 2026 are:

• Malaysian citizen aged 18 and above
• No fixed income or payslip (the scheme is specifically designed for this group; salaried employees with payslips are welcome but the scheme is not their primary route)
• Minimum average monthly income of RM1,000
• Income earned from any occupation, including self-employment, trading, agriculture, driving, delivery, and creative or digital freelance work

Joint applications by husband and wife are permitted. Two-generation financing is also allowed, meaning a parent and adult child can co-borrow to extend the repayment period beyond what either could achieve alone.

What HCGS Does Not Cover

• Refinancing of an existing property
• Commercial property purchases
• Properties where the borrower already owns residential real estate (for the Madani variant)

How to Prove Income Without a Payslip

This is the practical core of the application. You will not submit a payslip, but you must submit alternative income evidence that lets the bank assess your ability to service the loan each month. Banks make their own credit assessment; SJKP’s guarantee covers the risk but does not bypass the bank’s affordability check entirely.

Common documents banks accept for non-fixed-income applicants under SJKP:

• Bank statements (typically 6 to 12 months) showing consistent deposits
• Business registration documents (SSM certificate) if you run a sole proprietorship
• LHDN income tax returns (e-Filing or B/BE form) for the most recent assessment year
• EPF (KWSP) contribution statements, which show employment or self-contribution history
• Invoices, sales receipts, or contracts showing ongoing income
• Platform earnings screenshots (for Grab, Lalamove, Shopee, Etsy, or similar gig platforms), accepted at some banks
• A simple profit-and-loss summary prepared by a licensed accountant

The stronger and more consistent your bank statements, the easier the bank’s internal credit committee will find it to approve the loan alongside SJKP’s guarantee.

Step-by-Step: How to Apply

1. Check your income and property eligibility. Confirm your average monthly income is at least RM1,000 and that the property you want is residential and falls within the applicable financing cap.

2. Identify a participating financial institution. Applications go directly to the bank, not to SJKP. Major participating institutions include Bank Rakyat, BSN, Maybank, Bank Islam, Alliance Bank, Bank Muamalat, and Affin Bank, among others. Check with your preferred bank whether they are currently taking SJKP applications.

3. Prepare your income documents. Gather 6 to 12 months of bank statements, your latest LHDN tax return, and any supporting business or platform documents.

4. Submit the loan application at the bank. The bank collects your documents, performs its own credit assessment (CCRIS and CTOS checks still apply), and triggers the SJKP guarantee process internally.

5. SJKP issues the guarantee. Once the bank approves your application, SJKP issues a letter of guarantee to the bank at no cost to you. You sign the loan agreement with the bank as usual.

6. Proceed to sale and purchase. The rest of the property transaction follows the standard Malaysian conveyancing process.

You do not need to visit SJKP’s office at any point. The entire guarantee process runs between SJKP and the bank in the background.

What Affects Your Chances of Approval?

Even with SJKP’s guarantee in place, banks retain the right to decline an application if their internal credit scoring does not pass. Key factors that affect your outcome:

• CCRIS record. Missed payments on any existing credit facilities, even a credit card, will hurt your application. Run a free CCRIS check at bnm.gov.my or any Bank Negara branch before applying.
• Income consistency. A bank statement showing wildly fluctuating deposits is harder to underwrite than one with steady monthly inflows, even if the average is the same.
• Debt service ratio (DSR). Banks typically require your total monthly debt obligations (including the new mortgage) to stay below 60 to 70 percent of gross income. If you already have a personal loan or car loan, factor this in.
• Property valuation. The bank will order a valuation report. If the market value comes in below the purchase price, the financing quantum is calculated on the lower figure.

If you are concerned about your credit standing, AKPK (Agensi Kaunseling dan Pengurusan Kredit) offers free financial counselling and can help you understand your CCRIS position before you apply (akpk.org.my).

Comparing HCGS with Related Government Schemes

Scheme	Administered by	Target group	Max property value
HCGS (SJKP)	SJKP / MOF	No-payslip earners	RM500,000
HCGS Madani	SJKP / MOF	First-time buyers, no-payslip	RM360,000
PR1MA	PR1MA Corp	Middle-income, any income type	RM400,000
My First Home Scheme (Skim Rumah Pertamaku)	Bank Negara Malaysia	First-time buyers, income below RM5,000/month	RM500,000
Residensi Wilayah (RUMAWIP)	Federal Territories Ministry	Residents of KL/Putrajaya/Labuan	Below RM300,000

HCGS is unique in that it specifically targets the income-proof barrier rather than the property price point or buyer category. You can read more about the broader landscape in our guide to B40 housing schemes in Malaysia and in our article on buying property with government assistance.

Key Takeaways

• HCGS (SJKP) lets Malaysians without a payslip get a government-backed mortgage guarantee at no cost to the borrower.
• Standard HCGS covers financing up to RM500,000. HCGS Madani covers up to RM360,000 (first-time buyers only) at up to 120 percent of the property value.
• Minimum income is RM1,000 per month. Any occupation qualifies: gig work, trading, freelance, farming.
• Apply through participating banks directly. SJKP is not a lender; it is the guarantor behind the scenes.
• Strong, consistent bank statements and a clean CCRIS record are your two most important assets.
• No SJKP fee is charged to the borrower at any stage.

Frequently Asked Questions

Can I use HCGS even if I have been rejected by a bank before? Yes. A previous rejection does not disqualify you. Each bank makes an independent assessment. If your CCRIS record and income documentation have improved since the last rejection, try a different participating institution. Some banks have more flexible internal policies for SJKP applications than others.

Does HCGS cover subsale (secondary market) properties? Yes, the standard HCGS covers completed properties in the secondary market, properties under construction, and auctioned properties. It is not limited to new developments.

I file my income tax under the B form as a sole proprietor. Is that sufficient income proof? Your LHDN B form is one of the strongest income proofs you can provide. Combine it with 12 months of business bank statements and your SSM registration certificate for the clearest picture.

My spouse has a salaried job. Can we apply jointly under HCGS? Yes. A joint application is permitted. Your spouse’s payslip will strengthen the overall application. The bank will assess your combined DSR.

Is there an income ceiling to use HCGS? SJKP does not set an upper income limit. The scheme is primarily designed for lower and middle-income earners, but higher-income self-employed applicants can also use it if they lack conventional income documentation. The RM500,000 financing cap is the effective boundary.