State Bank of Pakistan (SBP) has released a circular detailing the eligibility criteria and financial terms for a subsidized housing finance scheme “Mera Ghar – Mera Ashiana”.
The circular states that the applicant should be a Pakistani citizen who holds a valid Computerized National Identity Card (CNIC) and should not possess a housing unit in their name already.
The scheme facilitates purchase of house or flat, house construction on a plot already owned by the applicant, and plot purchase and house construction.
Mera Ghar – Mera Ashiana Scheme- Eligibility, Criteria and Other Details
The applicant can seek loan for houses with a maximum size of 5 Marla and flats or apartments with a maximum area of 1360 square feet.
The facility will be accessible through all commercial banks, Islamic banks, microfinance banks (MFBs), and House Building Finance company Limited (HBFCL).
The loan limits and financing tiers are for Tier 1 (T1): up to Rs.2.0 million loans, for Tier 2 (T2): from Rs.2.0 million to up to Rs.3.5 million loans.
Click here to read this report in Urdu
The loan period will be 20 years, and subsidy will be available for the initial 10 years. Fixed price for customers will be 5 percent for Tier 1 and 8 percent for Tier 2.
As per the circular, the bank pricing is One-Year KIBOR + 3 percent. There will be no processing fees nor any prepayment fees.
Loan-to-Value (LTV) ratio shall be 90:10, i.e., 90 percent financing and 10 percent equity contribution by the debtor.
Covering of 10 percent risk on the outstanding portfolio under the scheme on a first-loss basis.
