The Presidents/ Chief Executive
Officers,
All Islamic Banks and Banks / DFIs having
Islamic banking branches
Islamic Financing
Facility for Low Cost Housing for Special
Segments
Dear Sir/Madam,
In
order to facilitate availability of long-term
affordable funding to some of the selective
low income segments, SBP has launched a
“Financing Facility for Low Cost Housing
for Special Segments” through IH&SMEFD
Circular No. 05 of 2019. In this regard,
SBP is also introducing a Mudarabah based
“Islamic Financing Facility for Low
Cost Housing for Special Segments”
(The Facility) for Islamic Banking Institutions
(IBIs) and Islamic DFIs; collectively referred
as Participating Islamic Financial Institutions
(PIFIs). Salient features of the financing
facility are as under:
- Participants: All
Banks/DFIs
- Financing Amount: Up
to Rs. 2.7 million
- 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
- Financing Tenor: Up
to 12½ years
2. Under this facility, Mudarabah investment
of SBP shall be available for up to 100%
of the amount financed to eligible customers.
SBP shall make Mudarabah investment in
general pool of the PIFI.
3. PIFIs may submit their requests for
allocation / assignment of limits under
this facility to be evaluated by SBP as
per its internal criteria. Yearly limits
shall be allocated to individual PIFI
under the Scheme. Applications for sanction
of limits for each fiscal year (July-June
basis) shall be sent by the interested
PIFIs 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.
4. The Mudarabah investment under the
Scheme shall be available for financing
sanctioned from the date of issuance of
this circular and up-to December 31, 2023.
Details of facility, Shariah Structure
of the facility and facility documents
are provided in the attached Annexures.
Encl:
Annex-I:
Islamic Financing Facility for Low Cost
Housing for Special Segments
Annex-II:
Documents for Islamic Financing Facility
for Low Cost Housing for Special Segments