Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 13 of 2020
November 20, 2020

The Presidents/Chief Executives
All Banks/DFIs


Dear Sir(s)/Madam(s),

Revised Prudential Regulations for Housing Finance

  1. This refer to IH&SMEFD Circular No. 03 dated April 18, 2017 on the subject above.

  2. With the objective to further facilitate the promotion of Housing Finance, Prudential Regulations (PRs) for Housing Finance have been revised. Accordingly, as a relaxation to the Regulation HF-4 of Prudential Regulations for Housing Finance, banks are allowed to accept liquid securities or another residential property of the borrower to meet prescribed 15% equity contribution of the borrower. Banks will be required to create lien/ mortgage on the liquid securities / another residential property accepted as equity contribution and total financing amount shall not exceed value of residential unit being financed.

  3. This relaxation shall be available on new housing finance extended by banks/DFIs after issuance of this Circular.

  4. Please acknowledge the receipt.

Yours sincerely,


(Dr. Mian Farooq Haq)


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