Karachi: The State Bank of Pakistan (SBP) on Monday revealed that the government had green-lighted a ‘markup subsidy facility’ for the purchase and development of new houses – under its vision of providing ‘affordable housing to the masses’, according to the news sources.
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The facility would be extended with the administrative support of the SBP, under its executing partner capacity – with the federal government and the Naya Pakistan Housing and Development Authority (NAPHDA). The facility also enables an individual to avail subsidised financing and mark-up rates to either construct or buy their home.
Reportedly, the government has allocated PKR 33 billion for the mark up subsidy payment “for financing over a period of 10 years and has assured the continuity of the said facility”. To this effect, the central bank and the government have already inked a memorandum of understanding (MoU).
The markup subsidy facility would be made available at all the banks and is divided into three tiers:
- Tier-I: Financing would be provided for the purchase of houses/apartments/flats of land area up to 5 marla or 125 sq yds, with a covered area of 850 sq ft (max) and price amounting to PKR 3.5 million, under the NAPHDA projects. A limit of PKR 2.7 million with a maximum tenor of up to 20 years has been set for tier-1.
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- Tier-II: Financing is available for houses/flats/apartments up to 125 sq yds or 5-marla – with a maximum covered area of 850 sq ft and maximum price of PKR 3.5 million. The financing limit under this tier is PKR 3 million with a tenor of 20 years.
- Tier-III: The financing facility under tier-3 is extended for the promotion of affordable housing for the middle-income families. It allows subsidised financing for the purchase or construction of apartments/houses/flats of land area over 5-marla (125 sq yds) and up to 10-marla (250 sq yds) – with maximum covered area from 850 sq ft to 1,100 sq ft and maximum price of PKR 6 million. The financing limit under this tier is PKR 5 million with a tenor of 20 years.