A low-cost housing finance scheme has been announced by the State Bank of Pakistan (SBP). The scheme has been announced keeping in view the housing need of people.
Rs. 33 billion has been allocated by the Pak government for the markup subsidy for financing payment over a period of 10 years. A memorandum of understanding has been signed between the State Bank and the Government of Pakistan.
According to the details, the government of Pakistan will provide a markup subsidy facility to construct and purchase new houses, in order to provide affordable housing to the masses. The facility will enable individuals to construct or buy new houses for the first time.
With the administrative support of the State Bank of Pakistan, the facility will be provided. The executive partners are the Government of Pakistan and the Naya Pakistan Housing and Development Authority (NAPHDA).
The markup subsidy facility is available via all banks. It is divided into three tiers. First-tier is for the purchase of housing up to 5 mala. Maximum financing under this tier is Rs. 2.7 million with a maximum tenor of up to 20 years.
The second Tier II is also for houses up to 5 marla. The maximum financing allowed under Tier 2 is Rs 3 million with a maximum tenor of up to 20 years.
The third Tier III is a facility for middle-income families. It allows maximum financing of Rs. 5 million with a maximum tenor of up to 20 years.