Applying for home loan in Pakistan

This post is the continuation of Prerequisites for applying for home loan in Pakistan.

The Helping hand of the banks for the Construction of your Sanctuary

Have you ever dreamed of having a house of your own where you would be under no obligations to follow certain fixed rules? Have you ever dreamed to cut off those shackles binding you and live peacefully in your own humble abode? Have you ever considered in loaning a certain amount from the bank for your home but then feared about being enslaved by the banks or felt the necessity to get advice from any expert? If you happen to possess similar bees buzzing in your bonnet, then here is the solution for you.

In order to secure a loan form a bank you have to be eligible for it. The eligibility criteria usually revolve around your salary and your service duration and the fact that you are a Pakistani. Secondly the amount you want to loan and the duration you can pay off the loaned amount. The third factor remains as the debt to equity ratio. Since various banks have various standards according to which they operate, providing people with services which vary from bank to bank similarly banks do have different conditions when it comes to lending money.

Below is some useful information which you can consult before procuring a loan from any bank.

Standard Charted Bank

Description	House Purchase	House renovation
Minimum salary	PKR 30,000	PKR 20,000
Service Duration	1 year	1 year
Financing Amount	Up to 30 million	Up to 3 million
Repayment tenor	1 to 20 years	1 to 10 years
Minimum age of the Borrower	Greater than or equal to 25 years	Greater than or equal to 25 years

Habib Bank Limited

Description	Outright Purchase	Home Improvement/ Renovation
Loan tenure	3 years to 20 years	3 years to 20 years
Loan amount	Rs. 300,000 – Rs. 15,000,000	Rs. 300,000 – Rs. 5,000,000
Maximum financing amount	85%	70%
Service Duration	1 year for salaried and 2 years for businessmen	1 year for salaried and 2 years for businessmen
Property lease (years remaining at the time of loan maturity)	5 years	5 years

Bank Alfalah

Description	House Purchase	House renovation
Minimum salary	PKR 50,000	50,000
Service Duration	2 years for permanent and 3 years for contractual employees	2 years for permanent and 3 years for contractual employees
Financing Amount	Greater than or equal to 2 million	100% of the construction cost
Repayment tenor	3 to 25 years	3 to 25 years
Age eligibility	23 to 60 years	23 to 60 years

National bank Of Pakistan

Description	Financing Amount	Financing Period	Debt to Equity
Home Purchase	Up to 35 Million	3 to 20 Years	85:15 (Maximum)
Home Construction	Up to 35 Million	3 to 20 Years	85:15 (Maximum)
Home Renovation	Up to 15 Million	3 to 15 Years	80:20 (Maximum)
Land Purchase	Up to 35 Million	3 to 20 Years	80:20 (Maximum)

The eligibility criteria include the borrower being a resident of Pakistan and aged between 21 to 65 years. He must be a salaried individual or a businessman and if salaried the minimum salary should be PKR5000 for Govt. Employees, PKR10,000 for other salaried persons and PKR 15,000 for businessmen or self-employed. The service duration stands at 2 years for salaries and 3 years for business categories.

Mentioned above are the updated details from banks holding out a helping hand to people, who intend to buy a house for their own. It is to be noted that Interest is haram (prohibited) in Islam and getting involved in such transactions is considered equally bad. With the inflation prevailing throughout our country and the merger salaries offered by the companies, even the religious are sometimes found to be getting along with the things prohibited.

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