An opposition MP has raised concerns over alternative plans proposed for successful applicants of affordable housing under the 1Malaysia People's Housing Scheme (PR1MA) who cannot obtain bank loans.

Temerloh MP Nasrudin Hassan said banks had rejected financing to these applicants because of their poor credit standing and the problem would persist even if they were provided alternative means.

"This means the banks do not want to take the risk of applicants defaulting on the loans.

"If PR1MA uses a different mechanism to foot the applicant's payment, the concern is that they will still face problems with repayment, especially if the mechanism offered charges interest," Nasrudin said in a statement today.

He was responding to the announcement by PR1MA Corporation chief executive officer Abdul Mutalib Alias that PR1MA was also looking into renting out properties to successful applicants until they could afford to purchase them.

However, Nasrudin said, priority should also be given to those who can afford to buy the affordable houses, especially families looking to own their first home, instead of renting out the units.