Karachi: State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Wednesday (October 27) emphasised the need to accelerate the pace of bank approvals for low-cost housing finance, according to news sources.
As per the details, the SBP governor stated that the lending pace of banks is extremely slow. The banks have received loan applications of more than PKR 200 billion and so far, PKR 78 billion has been approved while only PKR 18 billion has been disbursed. He went on to say that the banks must speed up the process so that people are not discouraged by the processing time.
Despite the support and encouragement from SBP, banks are cautious while lending loans for housing and construction. SBP Governor Baqir iterated that combined efforts of all stakeholders are required to turn the dream of Pakistanis to own home into a reality. He asked the stakeholders to increase the reach of Mera Pakistan Mer Ghar – the government’s markup subsidy scheme for housing finance.
Reportedly, when the Mera Pakistan Mera Ghar was launched, there was no low-cost housing finance service as banks did not venture into this area, mainly due to its inherent risks. According to the SBP governor, the housing and construction credit of banks has reached PKR 305 billion by the end of September 2021, which was PKR 166 billion at the end of September 2020.
Moreover, banks have established a joint call centre for resolving the queries of people related to Mera Pakistan Mera Ghar. The call centre will help address complaints of people and guide the individuals who would like to borrow under this scheme.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
