Karachi: State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Wednesday said that during the fiscal year 2020-21, banks have approved PKR 45 billion to 2,160 applicants of the low markup housing finance scheme, news sources reported.
During the announcement of the monetary policy statement (MPS) for the next two months, the governor stated that a total of 36,000 applications were received, of which 14,000 were reviewed and 2,160 applicants were granted loans, accounting for 15.5 % of the total.
However, of the total PKR 45 billion loans approved so far, the banks have disbursed PKR 5.8 billion. He further stated that in the preceding fiscal year (FY) ending June 30, 2021, banks extended total financing of PKR 259 billion for subsidised and unsubsidised loans, representing a 75% jump in housing and construction finance compared to FY20.
Furthermore, when explaining the financing mechanism, Dr Reza stated that banks provide home loans ranging from PKR 3-6 million with a 5-7 % markup, and loans applied for less than PKR 3 million on a 3-5 % markup rate.
He also stated that the housing scheme is being expanded to those with informal income, such as non-salaried people. They just require utility bills like electricity and phone bills now, and banks will establish house finance amounts based on the bill amount using their own estimating methodologies.
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