JAKARTA. State-owned lender Bank Tabungan Negara (BTN) is offering loans for low-cost homes in Pekanbaru in a bid to support the government’s 1 million homes program.

The loans come with a fixed interest rate of 5 percent with a 20-year repayment term and 1 percent down payment.

BTN president director Maryono said low-income people could own houses through the company’s subsidized housing loan scheme.

“After Balikpapan, we again offer [loans for] low-cost housing in Pekanbaru,” he said on Sunday as quoted by tempo.co.

The loans are only for housing in two residential complexes in Pekanbaru -- Griya Setia Bangsa (1,163 houses) and Griya Setia Nusa (963 houses).

So far this year, BTN has disbursed loans for 504,122 subsidized homes. The bank also aims to disburse loans for non-subsidized housing construction and non-subsidized housing for 161,878 homes.

Editor: Barratut Taqiyyah Rafie