All You Need To Know About Naya Pakistan Housing Loan Scheme


In this archive phone, the State Bank of Pakistan building can be seen. — Geo.tv/Files

The State Bank of Pakistan (SBP) said on Monday that the government would provide grant facility for construction and purchase of new houses.

“This facility will allow all individuals, who will be building or buying a new home for the first time, to benefit from bank financing at subsidized and affordable mark-up rates,” an SBP statement said.

This facility will have administrative support from the State Bank of Pakistan as an implementing partner along with the Government of Pakistan and Naya Pakistan Housing and Development Authority (NAPHDA), he added.

Here’s everything you need to know about the diet:

Eligibility criteria:

– All men/women holders of the CNIC

– First owner

– A person can only benefit once from a subsidized home loan under this program

– Only for the construction and first purchase of newly built affordable housing

Housing unit size

The loan size is divided into three levels, as follows:

– Level 1 (T1) – Housing units/apartments up to 125 square meters (up to 5 Marla) with covered area up to 850 square feet.

– Level 2 (T2) – Housing units/apartments up to 125 square meters (5 Marla) with covered area up to 850 square feet.

– Level 3 (T3) – Housing units over 125 square meters up to 250 square meters (10 Marla) or apartments with a covered area over 850 square feet to 1,100 square feet.

Maximum housing prices

Maximum price (market value) of a single unit at the time of funding approval, based on:

– Level 1 (T1) – Rs 3.5 million

– Level 2 (T2) – Rs 3.5 million

– Tier 3 (T3) – Rs. 6.0 million

Maximum loan size

Maximum loan amount for individual housing, depending on:

– Tier 1 (T1) – Rs 2.7 million

– Tier 2 (T2) – Rs 3.0 million

– Tier 3 (T3) – Rs. 5.0 million

Type of loan

– Long-term loans for housing finance.

Security requirements

– In accordance with the credit policy of the banks and the prudential regulations in terms of housing finance, the financed housing will be mortgaged in favor of the financing bank.

Budget allocation

– The Finance Division will authorize the SBP to debit the GOP account on a quarterly basis for the payment of the subsidy to the banks.

– Payment will be made to banks upon presentation of quarterly consolidated grant statement in the format prescribed by the State Bank of Pakistan.

Executing Agencies

– All Commercial Banks including Islamic Banks and House Building Finance Company Limited (HBFCL)

Application form

– A standardized application form in English and Urdu will require a minimum of essential information in a simple format.

– The processing time will not exceed 30 days after submission of all documents by the borrower and this will be clearly indicated in the application form.

Standardized procedures

– Banks should have standardized loan documents and risk acceptance criteria.

Monitoring

– SBP will publish consolidated information on loans granted under this program for public information on a quarterly basis on its website.

Pricing

Loan levels

Customer Pricing

Bank pricing

Level 1

5% for the first 5 years and 7% for the following 5 years

KIBOR+250 bps

Level 2

5% for the first 5 years and 7% for the following 5 years

KIBOR+400 BPS (spread may vary)

Level 3

7% for the first 5 years and 9% for the following 5 years

KIBOR+400 BPS (spread may vary)

For loan terms longer than 10 years, the market rate will apply for the period longer than 10 years.

Previous Home Loans I RBI home loan rules bring good news for borrowers making bigger down payments
Next Learn All About Naya Pakistan Home Loan Scheme - Pakistan