PMRC signs Credit Trust agreement with six banks to promote low-cost housing loans

KARACHI: The Pakistan Mortgage Refinance Company (PMRC) has signed a 10-year risk Credit Guarantee Trust (CGT) agreement with six Islamic and conventional banks to promote low-cost housing loans.

invest with imarat

Islamabad’s emerging city centre

Learn More

The World Bank and the State Bank of Pakistan (SBP) extended their support for the establishment of CGT. The leading banks include Meezan Bank, Habib Bank, Bank Islami, Faysal Bank, JS Bank and Soneri Bank, with PMRC as the trustee.

Under this agreement, the PMRC will provide up to 40% risk coverage as a credit guarantee for banks’ housing loans, on a first loss basis. And, it will also facilitate 5 and 10 Marla houses under the private-sector construction projects.

While commenting on this, SBP Deputy Governor Mr. Jameel Ahmed said that the agreement incentivises the banks to extend low-cost housing financing.

In addition, the banks which achieve the target of lending will be rewarded, while those who fail to achieve the target will be fined, he further informed.

The SBP Deputy Governor strictly forbade authorities from charging extra money in the name of processing, as strict action will be taken against those practising this.

It is expected that other banks in the country will also sign similar agreements with PMRC in the coming days.

 

For news and blogs, visit Graana.com. 

Maham Tahir

Recent Posts

Exploring Kalabagh: The Historic City in Mianwali District

Kalabagh, a small yet historically significant town in Pakistan’s Punjab province, is located within the…

21 hours ago

Nazimabad Number 2: A Well-Known Residential Area in Karachi

Nazimabad Number 2 is a well-known neighbourhood in Karachi, Pakistan, renowned for its vibrant community,…

2 days ago

A Guide to Quetta Town in Karachi

Quetta Town is a residential neighbourhood located in the vibrant city of Karachi, Pakistan. Known…

3 days ago

Akbar Chowk Lahore: A Focal Point of Connectivity

Akbar Chowk in Lahore stands as one of the city’s most critical intersections, serving as…

4 days ago

A Guide to Khuda Baksh Colony Lahore

Khuda Baksh Colony, located near Bhatta Chowk in Lahore, is a rapidly developing residential area…

5 days ago

Gol Market Karachi: A Vibrant Commercial Hub

Gol Market in Karachi is one of the city's most iconic and bustling commercial centres.…

2 weeks ago