Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 05 of 2019
March 11, 2019

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.


Annex-I: Financing Facility for Low Cost Housing for Special Segments

Annex-II: Documents for Financing Facility for Low Cost Housing for Special Segments

Yours sincerely,


(Ghulam Muhammad)


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