Mera Pakistan, Mera Ghar Scheme: Loan disbursement to resume for approved cases

Islamabad: The government has decided to resume the disbursement of loans for approved cases under the Mera Pakistan Mera Ghar (MPMG) home finance scheme. The information was shared by the Minister of Finance via its official Twitter handle on July 25, a news source reported.

Read: Govt to relaunch MPMG housing finance scheme in a week

The tweet further states that the ‘Finance Division has asked the banks to reduce their spread over KIBOR’. The news source also reported that via a circular, the State Bank of Pakistan (SBP) has announced that the govt has allowed banks/DFIs/MFBs to disburse financing as existing terms of the low-cost housing scheme.

The SBP mentioned that the loans will be distributed for cases meeting the following conditions on or before June 30:

• Approved cases (purchase and/or construction) pending for disbursement due to any legal formality. All pre-disbursement formalities have been completed, token money is paid, and all incidental expenses are incurred and banks have also cleared the cases. 
• Approved cases where customers have signed agreements, paid token money and obtained property documents from sellers or in case of construction loans, Fard/PTM for the loan has been issued. These cases have some internal procedures pending from the banks’ end.

Read: Funding for low-cost housing, youth loan scheme temporarily suspended

• Peri-urban/ Naya Pakistan Housing & Development Authority (NAPHDA) projects cases where a down payment has been received from customers.

Reportedly, the government has decided that the spread of banks on the disbursements against cases mentioned above will be 250 bps over and above KIBOR rather than 400 bps. The SBP also mentioned that all other cases will be considered when the revised features of MPMG are announced.