KARACHI: The State Bank of Pakistan (SBP) on Monday eased housing loan conditions by allowing the applicants a personal guarantee.
According to the SBP statement, the applicants were currently facing difficulties in obtaining housing finance, especially for low-cost housing, as banks were reluctant to take any risk in this regard (house not being completed on time or incomplete documentation).
“With an aim to facilitate the banks in extending low-cost housing finance, SBP has allowed them to accept a personal guarantee of the third party until the housing unit is completed and the mortgage is perfected,” said the statement. “The guarantee will remain valid for a maximum period of one year,” it added.
According to SBP, this step would help promote homeownership of potential borrowers wishing to avail housing finance under the Government Markup Subsidy Scheme issued by the central bank on October 12, 2020.
In April 2019, Prime Minister Imran Khan had launched the federal government’s Naya Pakistan Housing Scheme, vowing to help the country’s long-neglected stratum move from ‘katchi abadis’ into swiftly constructed flats and high-rises.
The scheme was launched at an event held in Islamabad where Housing and Works Minister Tariq Bashir Cheema, Minister Asad Umar and various other government officials were also present.
The prime minister, during his speech, had explained that housing did not feature high on his priority list originally but an incident changed his way of thinking about the industry.
He further said that a revolving fund worth Rs5bn had been approved, adding that the sum would be used to grant up to Rs20bn in loans to aspiring house owners.
