Senior anchor and analyst Kamran Khan has highlighted how for the first time in the history of Pakistan, a scheme has been launched for the private housing of the common man in which a middle-class person can build his small house by paying a monthly installment of Rs 10,000 to Rs 12,000. “Yes it is true. A common man can now afford to build a small house or buy a flat, and this development is the result of personal efforts of Prime Minister Imran Khan.” stated Kamran.
“In his program”, continued Kamran Khan, “for the first time in Pakistan, the banking sector has been attracted to housing finance to boost the construction sector. The project will be the first time in the history of Pakistan that half of the interest on loans will be halved for 10 years. The government will bear the share,” he added.
According to the anchor, the government has also decided to allocate Rs 33 billion for the project. “Only Pakistani citizens who are buying or building a house for the first time will be able to participate in the project. The Home Financing Markup Subsidy facility can be availed through all the banks and is divided into three parts” stated Kamran.
PM Imran Khan’s initiatives on housing/construction sector including housing finance and yesterday’s announcement on mark up subsidy for small home owners are truly historic. Deputy Governor SBP Sima Kamil will join me to explain banking components at DKKKS 10 pm tonight
— Kamran Khan (@AajKamranKhan) October 13, 2020
He further claimed that in the first part, “loans will be given to the participants in the New Pakistan Housing Scheme, while in the second part, those who are not part of the New Pakistan Housing Scheme or whose application is rejected in this scheme will be included. Furthermore, in the second phase, they will be able to take loans for 125-yard, 5-marla or 850-foot flats, with a maximum value of Rs 3.5 million set by the government”.
Per the anchor’s submissions, a loan of up to Rs 3 million will be provided for 20 years under this scheme. The interest rate will be 5% in the first 5 years and 7% in the next 5 years. The government will pay about half of the interest rate during this period. In the third phase of the project, a loan for 10 marla, or 250 yards or 1150 square feet flat will be available. For now, the government has set a price of up to Rs 60 lakh. The government will provide a loan of up to Rs. 7 per cent for the first five years and 9 per cent for the next five years.
Deputy Governor SBP lays out affordable home financing framework
Deputy Governor SBP Seema Kamil said yesterday that in view of the problems facing the common man in home financing, even someone paying as low as Rs 12,000 per month will now be able to afford a house.
Kamil said this while talking exclusively to the Dunya News program, “Dunya Kamran Khan Kay Saath” Kamil added that for the first time, an initiative has formally been taken to ease housing finance in Pakistan.
Kamil further highlighted how the middle class would also be able to own a house with up to Rs 25,000 in installments. “The only condition is that they must be first-time homeowners. An existing homeowner will not receive discounted housing finance,” she added.
The deputy governor continued that the Prime Minister holds weekly home finance meetings and biweekly meetings with the SBP Governor. Seema Kamil added that the preparation of forms, brochures, marketing and training has started with the banks. “They have started training staff for home financing and within a week, products, advertisements and brochures will be available”.
Kamil further provided that most people use Shariah compliant financing to build their houses so that housing finance will mostly have Islamic banking products. “The first tier will have the ‘Naya Pakistan Housing Program’ while the remaining houses will be in the second tier,” said Kamil.
Read More: Imran Khan lays foundation stone of 20,000 housing units in Islamabad
Finally, the Deputy Governor said that both forms and product features will be the same for all banks, and that they have been instructed to decide on customers’ loans within 30 days. “For those who do not have proof of income, the banks will estimate their income using electricity bills, phone bills and school fees etc,” confirmed Kamil.