Easy loan financing for Low Cost & Naya Pakistan Housing Schemes

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  • 1 year ago
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The government of Pakistan has reduced interest rate by 90% for low-cost houses, while the banks are providing loans on 5% mark-up for 5 marla houses and 7% for 10 marla houses.

For this purpose, the loans are being provided by various banks which have also established special desks named “Mera Pakistan Mera Ghar” to facilitate the customers for availing loans and providing information regarding loans, required documents and loan repayment schedule.

The monthly instalment would be Rs6,600 on the loan worth Rs1 million for the first five years while the monthly instalment would be Rs13,199 on the loan worth Rs2 million, Rs19,799 on loan worth Rs3 million, Rs31,012 on loan of worth Rs4 million and Rs38,765 instalment on the loan of worth Rs5 million.

State Bank of Pakistan, last week, announced regulatory relaxations for banks to encourage financing low cost and affordable housing for people.

The banking regulator has now allowed commercial banks a relaxation on documentary evidence from borrowers.

On the other hand, SBP said it is exempting commercial banks from another requirement till September 30, 2022 in low-cost housing finance.

There are three categories under the scheme;

(a) The first one is for Naya Pakistan Housing and Development Authority (NAHDA) projects, which includes five marla houses or apartments covering an area of 850 square feet.

(b) In the second one, non- NAPDHA projects include a five marla house or apartment in 850 square feet covered area.

(c) Similarly, in the third one, non-NAPDHA projects consist of houses on more than 125 square yards up to 10 marla with a covered area of 850 square feet to 1100 square feet.

The maximum value of first and second categories’ houses or apartments have been fixed at Rs3.5 million while the price of third category houses or apartments have been fixed at Rs6 million.

Under this scheme, the loan of up to Rs2.7 million would be provided for the first category, maximum Rs3 million for the second category and up to Rs5 million for the third category.

The processing of ‘No Objection Certificate’ for approval of the projects in a short span of time is being completed by the respective provincial development authorities through one window portal.

Financing facility for “Special” segments:

Financing is available to selective low income segments only i.e. widows, children of shaheed, transgender, special persons and persons in the areas severely affected by war against terrorism

Financing is available only for first time homebuyers

Mark-up rate is upto 5% per year

Max financing to a single borrower is Rs. 27 lacs

Loan tenure is upto 12.5 years including grace period of 6 months.

Eligibility for taking loan:

Individuals in the above categories can avail financing subject to following eligibility criteria / conditions:

  1. The borrower must not own any residential housing unit /flat / apartment.
  2. The borrower must not have availed housing finance previously from any bank/DFI.
  3. The loan shall be available only for construction (including plot purchase) of new housing unit.
  4. Maximum value of the housing unit, being financed under this scheme, shall be Rs. 3 million (including plot value).
  5. Sale or renting out of housing unit, financed under this scheme, shall not be allowed until full adjustment of outstanding finance or five (5) years after the date of first disbursement or, whichever is earlier.

Akhuwat Islamic Microfinance:

Under the said scheme, poor and deserving families will be provided with financial assistance as per Shariah compliant product up to PKR 500,000/- through Akhuwat Islamic Microfinance (AIM).

Average Monthly rental amount is up to Rs. 10,000/-

Repayment period is from 13 to 60 months.

Low Cost Housing Project

This scheme seeks to support the poor both economically and socially.

The provision of Rs300,000 subsidy per housing unit on construction of first 100,000 houses for low-income groups under Naya Pakistan Housing Programme (NPHP) will fulfill the dream of marginalised sections of society to have their own houses by paying a house instalment instead of rent.

The government has allocated Rs30 billion as subsidy for the NPHP which will help reduce the prices of construction materials and boost the country’s economy, according to the Naya Pakistan Housing and Development Authority (NAPHDA).

To achieve the objective, Federal Government Employee Housing Authority (FGEHA) has been tasked which already launched different schemes in line with the targets set by the government. The authority is pursuing joint venture on private land, government to government programs on government land.

The government revived various impeded projects including Green Enclave-I Bhara Kahu project in December 2019 to allot 3,282 plots to the applicants. The authority allotted 5,198 plots under Sky Garden project after its revival in July 2020 and allotted 3,240 plots under Lifestyle Residency Apartments G-13 scheme.

The prime minister inaugurated Kashmir Avenue G-13 Islamabad scheme under to build 1,467 apartments; 3,432 apartments to be built under Chaklala Heights Rawalpindi scheme, 3,945 apartments under SkyLine Apartments Islamabad scheme and 1258 under Lifestyle Residency Lahore scheme.

The  federal government signed Memorandum of Understandings (MoUs) with provincial governments under government to government housing schemes  projects targeting (798 apartments) in Azad Jammu and Kashmir, 16,000 apartments for fishermen, 18,000 apartments and 12,000 plots for general people in Balochistan 750 apartments in Khyber Pakhtunkhwa.

The construction industry package included tax incentives, waivers and subsidies in sales tax, capital gain tax and withholding tax. “Fixed tax at rate of per sq yard or per sq meter will be charged from investors. Those investing in Naya Pakistan Housing Program will be given 90% rebate in fixed tax.”

The federal cabinet has also passed an ordinance to provide tax incentives to the construction industry through amendments in the Income Tax Ordinance 2001 and the Finance Act 1989. The government is also providing other facilities including fixed tax system and the provision of low-interest loans for the low-income groups and employees in the construction sector.

KDA & SBCA speedy permits for Low Cost Naya Pakistan Housing Scheme in Karachi

 

Builders will pay 6 times lower tax under PM’s Construction Package besides markup subsidy facility

 

 

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