SBP finance policy for low-cost housing scheme: Loans, eligibility, criteria, salient features and every thing you want to know
KARACHI: Prime Minister Imran Khan on Monday launched State Bank of Pakistan’s finance policy for construction of low-cost housing units in the country.
PTI supporters saw it as a momentous step forward towards completion of party government’s flagship project of constructing five million houses for homeless, poor and needy people.
The State Bank of Pakistan said in a statement “Lack of affordability is a key factor depriving low-income strata of population from full access to institutionalized housing finance to meet their housing needs. This is even a greater challenge for the segments of society with special conditions such as widows, children of Shaheed, transgender, special persons and persons in the areas severely affected by war against terrorism.”
According to a circular issued by the SBP, it has decided to introduce a “Finance Facility for Low Cost Housing for Special Segments”.
The circular gave the criteria and other details about the scheme.
Participants: All Banks /DFIs
Loan Amount: Up to Rs 2.7 million
Refinance: Up to 100 percent by State Bank of Pakistan
Scope: Widows, Childen of martyers, Special Persons, Transgender,Persons in areas affected by terrorism
Eligibility of Borrower:
First time home owner
Must not have availed housing finance previously
For construction of a new housing unit
Maximum value of the housing unit up to Rs3 million
The financing for plot to be purchased for constructing house shall be allowed up to Rs10 million only
Loan Tenor: Up to 12 and a half years
Borrower Rate for SBP Refinance 5 percent (including bank’s spread of up to 4 percent)