Getting an interest-free loan from the bank is the best solution for purchasing or buying your first home. While there are myriad home loan options in Pakistan, Meezan Bank Home Loan is the best in providing shariah-compliant financing facilities to customers.
This home loan isn’t based on lending or borrowing money but on joint property ownership. It transfers complete ownership once the full payment has been made, according to the agreement.
If you want home financing from Meezan, Graana.com, Pakistan’s smartest property portal, provides a complete guide below.
Some of the key features of the home loan are given below.
The most significant advantage of Meezan Bank is that it offers home loans in Pakistan for various categories, as mentioned below.
Meezan Bank is one of the top Banks Providing Home Loans in Pakistan. In this category, the applicant can get a loan of a minimum PKR 500,000/- to a maximum of 50 million. The tenure can range from 3 to 20 years. The bank provides a 75% financing facility to salaried individuals and 65% to businessmen/self-employed individuals. In the easy buyer category, you choose an already constructed house.
In this category, you get a loan for building a home on an already-owned piece of land. You get financing facilities in the range of PKR 5 million to 50 million. The facility’s tenure is from 2 to 20 years, exclusive of the construction period.
With the ‘easy renovate’ option, you can get a financing facility in the PKR 5 to 10 million range. The loan tenure will be 2 to 15 years. You can renovate your home through this loan to add more value to the property. The bank will finance 30% of the total needed to renovate a property.
This is another home loan scheme in Pakistan. In the ‘easy replace’ loan, you can transfer your home loan from any other bank to Meezan Bank.
You get a loan in the range of PKR 5 million to 50 million for 3 to 20 years. The bank will finance 75% of the total amount to salaried persons and 65% to businessmen/self-employed persons.
There are two payment models to get a home loan:
In the UMI model, the bank and customer enter into an agreement with the purpose of making investments to construct, purchase and renovate the property. This concept is called diminishing musharakah.
Under this concept, the bank share is divided into units that customers purchase by paying monthly instalments. After paying the instalments on a regular basis, the customer becomes the owner of the property.
In the step-up model, the customer gets the opportunity to pay lower monthly instalments at the start that he/she can afford to pay. The bank share is divided into musharakah units.
Initially, the customer buys one unit of the musharakah from the bank every month and, after a while, the customer buys two units of musharakah every month from the bank.
To calculate the monthly instalments of the loan, you can use the Meezan bank home loan calculator to plan the financing according to your needs. In the calculator, you can choose tenure, financing amount, payment plan etc. Once you have selected all options, you get the exact monthly instalment that you would have to pay to the bank.
Most of the time, obtaining a loan from the bank depends on your credit history, income and some other factors. Usually, banks take a look at the three C’s, which include character, capacity and collateral.
In banking terms, this is a way of checking that you have not defaulted on any payment or loan commitments to anyone. You can get all your credit history from your bank and provide it at the time of your loan application.
If your net income is more than all your spending, including the new loan payment, then banks will not have any difficulty in lending you money. They will check other aspects as well, but this is their primary way of checking that you can afford the repayment of loans.
This refers to an asset that a lender accepts as security for a loan. If a person is unable to repay the loan, then the bank has the authority to take possession of that asset that was offered by the borrower.
Hence, it is important for the applicants to structure their home loan application according to these three C’s.
Following are the eligibility criteria for Pakistani residents to get a home loan from Meezan Bank.
Following are the requirements for Pakistanis who are living abroad.
This loan facility is only for salaried individuals who are living in any foreign country.
The following are the required documents to apply for the Meezan home loan.
To get a loan from the bank, you need to provide proof of your income. For your convenience, we have listed the required documents for both salaried and self-employed individuals.
Salaried Individuals
Businessman and Self Employed individuals
If you want the financing for buying, constructing, replacing, or renovating a property, you must provide all the necessary property-related documents. At the time of application, you need to provide only the copies and before the disbursement of the loan, original documents are to be handed in.
Once you have all the required documents, it is time to apply for the loan. Following is the complete process of a loan application.
If you’re considering buying a new house, Meezan Bank is your best choice for getting a home loan as it offers Shariah-compliant home loans to borrowers.
For more information regarding home loans or the steps of construction of the home, follow Graana blog.
When it comes to house loans in Pakistan, there are several banks that offer attractive interest rates and flexible repayment terms, including Meezan Bank, HBL, UBL, Askari Bank, and others. The best bank for a house loan would depend on your specific requirements, such as loan amount, tenure, interest rate, and other factors.
Regarding the interest rate of Meezan Bank loan, it can vary depending on the specific loan product and terms. It’s best to contact the bank directly or visit their website to check the latest interest rates.
To apply for the Apna Ghar scheme, you can visit the official website of the National Database and Registration Authority (NADRA) or contact the relevant authorities for more information. The Apna Ghar scheme is a government-backed initiative to provide affordable housing solutions to low-income families.
Regarding the interest rate of an easy loan, it can vary depending on the lender and specific loan product. It’s best to compare different lenders and check their interest rates, repayment terms, and other factors before deciding.
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