Several banks offers loan of up to Rs10 million to citizens of Pakistan helping first-time homeowners in Pakistan purchase or construct their own houses.
Under the Prime Minister’s Apna Ghar Programme, eligible Pakistani citizens holding a valid CNIC can apply for housing finance if they do not already own any residential property in their name.
According to the available details, the financing facility can be used for purchasing a new house or flat, constructing a house on an already owned plot, or purchasing a plot followed by construction.
The scheme covers housing units up to 10 Marla or 2,720 square feet for houses, while flats and apartments of up to 1,500 square feet are eligible. The maximum financing limit under the programme is up to Rs10 million.
The financing facility offers a fixed end-user rate of 5% for the first 10 years, while subsequent years will be based on KIBOR plus 3%. The maximum financing period is 20 years, with the markup subsidy applicable during the first decade.
The financing structure follows a 90:10 ratio, meaning applicants will contribute 10% of the property value as equity, while the bank will finance the remaining 90%.
The scheme also provides benefits including no processing fee and no prepayment penalty.
Monthly Installment for Rs5 million for 10-Year Financing
Under the tentative repayment plan, monthly installments for Rs5 million for the period of five years stands at Rs53,033.
However, monthly installments for a Rs10 million financing amount are estimated at around Rs65,996 for a 20-year period, Rs79,079 for 15 years and Rs106,066 for a 10-year period.
