ISLAMABAD: In a bid to meet the housing demand and boost the economy through construction activities, the Government of Pakistan (GoP) has announced a markup subsidy worth Rs33 billion as the housing finance scheme.
The facility will be available through all the banks, as the State Bank of Pakistan announced administrative support as an executing partner with the Government of Pakistan and Naya Pakistan Housing and Development Authority (NAPHDA).
In this regard, the SBP and Government of Pakistan have signed a memorandum of understanding (MoU).
The housing finance can be availed at subsidised and affordable markup rates by individuals constructing or buying a new house can avail bank financing
The markup subsidy facility will be available through all banks and is divided into three tiers.
Financing under Tier I
Available for the purchase of houses/apartments/flats measuring up to 5 Marla or 125 sq. yards, with a maximum covered area of 850 sq. feet and maximum price of Rs3.5 million, under NAPHDA projects.
Maximum financing under this tier is Rs2.7 million with a maximum tenor of up to 20 years. Rs2.7 million.
The banks will charge a maximum markup rate of KIBOR plus 250 basis points.
The GoP will provide a markup subsidy to reduce borrowers’ rate to 5% for the first five years and 7% for the next five years.
Karachi Interbank Offer Rate (KIBOR) is determined in the interbank market on daily basis and is used as a benchmark for most of the retail lending by banks.
These rates are published on the website of SBP on daily basis.
Financing under Tier II
This Tier facilitates the construction or purchase of housing units by individuals and households who have not applied or qualified for NAPHDA projects
Available for houses/apartments/flats measuring up to 5 Marla or 125 sq. yards with a maximum covered area of 850 sq. feet and a maximum price of Rs3.5 million.
Maximum financing under this tier is Rs3 million with a maximum tenor of up to 20 years.
Banks will charge a maximum markup rate of KIBOR plus 400 basis points.
The subsidized rate for the borrowers for the first 10 years under Tier 2 is the same as that of Tier I.
Financing under Tier III
Promotes affordable housing for middle-income families.
This Tier allows subsidized financing for construction or purchase of houses/apartments/flats of measuring more than 5 Marla (125 sq. yards) and up to 10 Marla (250 sq. yards) with maximum covered area from 850 sq. feet to 1,100 sq. feet and maximum price of Rs6 million.
Maximum financing under this Tier is Rs5m with maximum tenor of up to 20 years.
Banks will charge a maximum markup rate of KIBOR plus 400 basis points.
The GoP will provide a markup subsidy to reduce borrowers’ rate to 7% for the first five years and 9% for the next five years.
For news and blogs like an area guide on Scheme 33, visit Graana.com.
Garha Mor, a notable landmark in Vehari, Punjab, Pakistan, is significant in its location, accessibility,…
Located in the center of Wah Cantt, Aslam Market is a vibrant commercial hub that…
Located in the bustling heart of Lahore, Abid Market is a landmark shopping area well…
ISLAMABAD, Nov 16 (APP): The Chairman of the Capital Development Authority (CDA), Muhammad Ali Randhawa,…
Islamabad, Pakistan— IMARAT Group, a leading real estate developer and innovator in Pakistan, announces the…
Amma Tower, located in the bustling area of Saddar in Karachi, is a unique blend…