Loans for house construction in DHA Multan!

[hasham.naq (Hasham Naqvi)]

DHA Multan is offering home financing facility to its members. The society has signed up a contract with Bank Al-Habib and under the sweet deal, buyers of DHA Multan can get loans at a special rate of 1 Year Kibor + 1.75% per. The applicants will get life insurance as well and wouldn’t have to pay extra in case of early settlement.

The eligibility criteria dictates:

• Max financing of PKR 10 – 15 million

• A tenure of up to 25 years.

• A monthly income of PKR 60,000 for salaried individuals and PKR 100,000 for businessmen, and the minimum consumer equity will be 30%.

For the plot owners in DHA Multan, I think it’s a pretty sweet deal. Especially the early settlement thing... What do you folks say? Also, can someone explain to me what exactly is consumer equity – As far as I can tell this means that of the total construction cost, the consumer will have to fund minimum 30% to get the bank to pay the rest. Can someone confirm this?

[farhad.hassan.clc (Farhad Hassan)]

Now they have also added another option of a home financing by Meezan Bank. In the case of Meezan Bank the provided loan is not only for the construction but also purchase of plots -- although in each case, you will have to construct through the loan as well since that is DHA Multan's primary interest in the loans, I suppose.

To ne specific, the loan is available for purchase of constructed villas, purchase of residential plots and the construction on it, and construction of houses.

In this case, the tenure runs between 3 to 20 years and you can settle the loan early.

The 'profit' rates are quite decent in this case as well though slightly higher than Bank Al-Habib loans. KIBOR+2% p.a. And they will finance up to 75% of the value of the property (for salaried people).