The Presidents/ Chief Executives,
All Banks/DFIs
Financing Facility
for Low Cost Housing for Special Segments
Dear Sir/Madam,
Lack
of affordability is a key factor depriving
low-income strata of population from full
access to institutionalized housing finance
to meet their housing needs. This is even
a greater challenge for the segments of
society with special conditions such as
widows, children of Shaheed, transgender,
special persons and persons in the areas
severely affected by war against terrorism.
In order to facilitate availability of long-term
affordable funding for housing to these
segments of society, State Bank of Pakistan
(SBP) has decided to introduce a “Financing
Facility for Low Cost Housing for Special
Segments” (The Scheme). Salient features
of the Scheme are as under:
- Participants:
All Banks/DFIs
- Loan Amount: Up
to Rs. 2.7 million
- Refinance: Up to
100% by SBP
- Scope:
- Widows
- Children of martyrs
- Special persons
- Transgender
- Persons in areas severely affected by
terrorism
- Eligibility of
Borrower:
- First time home owner
- Must not have availed housing finance
previously
- For construction of a new housing unit
- Maximum value of the housing unit up to
Rs. 3 million
- The financing for plot to be purchased
for constructing house shall be allowed
upto Rs. 1.0 million only
- Loan Tenor: Up
to 12½ years
- Borrower Rate for SBP Refinance: 5% (including bank’s spread
of up to 4%)
2. Yearly limits shall be allocated to
individual banks/DFIs under the Scheme.
Applications for sanction of limits for
each fiscal year (July-June basis) shall
be sent by the interested banks/DFIs to
the Director, Infrastructure, Housing &
SME Finance Department, latest by 15th May
each year to facilitate sanction of annual
limits at the earliest. For the current
year, the request for sanction of limits
may be submitted within 30 days from the
date of issuance of this circular. .
3. The refinance under the Scheme shall
be available for loans sanctioned from the
date of issuance of this circular and up
to December 31, 2023. Details of the Scheme
and its documents are attached herewith
at Annexure I and II respectively.
Encl:
Annex-I:
Financing Facility for Low Cost Housing
for Special Segments
Annex-II:
Documents for Financing Facility for Low
Cost Housing for Special Segments