Karachi: The State Bank of Pakistan (SBP) on Thursday (March 24) has announced that the highest increase in housing loan disbursement has been witnessed in February, news sources reported. Commercial banks rolled out PKR 9.3 billion for housing loans, reaching a total of PKR 53.07 billion since the subsidised housing finance initiative’s launch.
According to reports, loan disbursements under the Mera Pakistan Mera Ghar (MPMG) plan totalled PKR 28 billion by the end of November 2021, since its inception. On the other hand, the government established an obligatory threshold of 5% for home loans for the banks. The policy shift resulted in a 46% increase in home loans in the three months ending in February, totalling PKR 53 billion. As a result, the central bank has directed banks and financial organizations to speed up loan distribution to fulfil the statutory target. Furthermore, banks sanctioned PKR 7.5 billion in on-the-spot house loans during a recent Housing Finance Mela in Faisalabad.
According to central bank policy, housing loans are provided at a competitive rate through Islamic and traditional banking channels for 5 to 20 years. According to SBP policy, borrowers would be charged a financing rate of 3% for the first five years, 5% for the next five years, and Kibor (Karachi Inter-Bank Offered Rate) + 350 basis points for the remaining financing period.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
