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Government’s Mark up Subsidy Scheme for Housing Finance

Lack of affordability is a key factor depriving low-income population from access to institutionalized housing finance to meet their respective needs. In order to facilitate availability of long-term affordable funding for housing to these segments of society, GOP and State Bank of Pakistan (SBP) have decided to introduce a “Government’s Mark up Subsidy Scheme for Housing Finance”.

Particulars
Markup Subsidy Program
Eligibility Criteria
• All men/women holding CNIC
• First time house owner
• One individual can have subsidized house loan facility under this scheme only once
Age
• Minimum Age at the time of application-25 years.
• Maximum Age for both applicants and co-applicants upon the maturity of the financing should not exceed
    60 Years for SI     and
    65 Years for SEP & SEB;
Tier of Scheme
• Financing under Tier 1 is available through banks for financing under NAPHDA projects
• Financing under Tier 2 and Tier 3 is available through banks for financing of housing units/Apartments/Flats under non-NAPHDA projects
Size of Housing Unit
Size of the loan is segregated into three tiers, as under:

    • Tier 1 (T1)
        (a) House up to 125 sq yds (5 Marla) with maximum covered area of 850 sq ft     and
        (b) Flat/apartment with maximum covered area of 850 sq ft.

    • Tier 2 (T2)
        (a) House up to 125 sq yds (5 Marla)     and
        (b) flat/apartment with maximum covered area of 1,250 sq ft.

    • Tier 3 (T3)
        (a) House upto 250 sq yds (10 Marla)     and
        (b) flat/apartment with maximum covered area of 2,000 sq ft.
Age of Housing Unit
Newly constructed housing units during last one year from the date of application. However, this requirement will not be applicable till March 31, 2023 under Tier 2 and Tier 3.
Maximum Price of Housing Units
Maximum Price (Market Value) of a single housing units/Apartments/Flats at the time of approval of financing, as under:
Tier 1 (T1) - Rs 3.5 million
Tier 2 (T2) and Tier 3 (T3) - No cap
Maximum loan size
Maximum size of the loan of a single housing unit, as under:
Tier 1 (T1) - Rs 2.7 million
Tier 2 (T2) - Rs 6.0 million
Tier 3 (T3) - Rs 10.0 million
Loan Type
Long term housing finance loans.
Loan Size, Pricing & Security
Loan Tiers
Customer Pricing
Bank Pricing
Tier-1 3% for first 5 years &
5% for next 5 years
1 Year KIBOR + 250 BPS
Tier-2 5% for first 5 years &
7% for next 5 years
1 Year KIBOR + 400 BPS
(Spread may vary)
Tier-3 7% for first 5 years &
9% for next 5 years
For loan tenors exceeding 10 years, market rate i.e. bank pricing will be applicable for the period exceeding 10 years.
Tenure of Loan
Minimum 5 years and maximum 20 years loan tenor, depending upon choice of customers.
Monthly Salary
No minimum or maximum salary
Job Experience
No minimum or maximum job experience required.
Geographical Distribution
Whole of Pakistan.
Loan Repayment
Based on Monthly Installment (MI) payable on the 1st of every month.
Processing Fee & Charges
Processing Fees* Rs. 5000/-
Other charges at Actual
*Processing fee is payable for approved cases at the time of disbursement.
This page was last updated on: August 24, 2021 2:19:00 PM
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