LAHORE – Pakistani citizens who want to own a house can obtain loan from private banks under the Pime Minister Apna Ghar Program – ‘Ghar Ho Tu Apna’ on easy installment.
HBL Islamic Banking is offering home financing, aimed at providing eligible citizens with financing for residential properties.
Eligibility
The facility is available to Pakistani citizens who are first-time homeowners and hold a valid CNIC. Applicants must not already own any residential property in their name.
The financing can be used to purchase a new house or flat, construct a house on an already owned plot, or purchase a plot and construct a house.
Eligible housing units include houses measuring up to 10 marla or 2,720 square feet, while flats and apartments can have an area of up to 1,500 square feet.
Financing and Tenure
Under the scheme, financing of up to Rs10 million is available. The fixed end-user rate is 5% for the first 10 years, after which the rate becomes variable at KIBOR plus 3%.
The maximum financing period is 20 years, with the government markup subsidy applicable for the first 10 years. The financing-to-value ratio is 90:10, meaning applicants contribute 10% of the property value as equity while the bank finances the remaining 90%.
Monthly Installment for Rs4 Million Loan
For a financing amount of Rs4 million, the tentative monthly installment is Rs26,398 over 20 years, Rs31,632 over 15 years and Rs42,426 over 10 years.
