The State Bank of Pakistan (SBP) on Monday announced three different categories of subsidised markup rates for affordable housing finance.
The government will provide subsidized loans for the construction of the cheap houses in the light of the vision of PTI. According to this facility, all those who are purchasing or constructing the house for the first time, will be eligible for these loans whose markup will be very low.
This facility will be extended with the cooperation of State Bank of Pakistan which will be the executive partner of the government of Pakistan, and the Naya Pakistan Housing and Development Authority (NAPHDA).
The government of Pakistan has reserved Rs 33 billion for the payment of subsidized loans for 10 years and also assured the continuation of this facility. In this regard, the government of Pakistan and State Bank have signed a memorandum of understanding. This facility will be available in all banks.
It has three levels. According to the NAPHDA housing projects, at first level, the facility will be for the construction of 5 Marla houses, having 125 square yards area, flats, or apartments whose maximum area will be 850 square feet and the maximum loan by State Bank will be 35 lac. For this category, the maximum amount of loan would be Rs 27 lac and the maximum time of repayment would be 20 years. For the first 5 years, the markup will be 5% and for the next 5 years, the markup will be 7%.
For the next level, the houses, apartments, and flats whose maximum area will be 850 square feet and the maximum prices of which will be Rs 35 lac, will be extended the loan for the purchase up to Rs 30 lac and the maximum period for the repayment will be 20 years. Under this level of the facility, the people who did not apply for the NAPHDA project or could not qualify will be given the loans for the construction or purchasing of the housing unit.
The third level of loan facility is for the middle-class people who desire to construct or buy the housing units above 5 Marla but less than 10 Marla or 250 square yards, the total covered of which will be from 850 square feet to 1100 square feet, the maximum price of these houses will be Rs 60 lac. For this level, maximum Rs 50 lac will be given for 20 years.
People, in general, have admired this policy but some are of the opinion that the system of taking these loans should be simple so that a common man can easily understand and fill up the concerned performas.