Buying a house today is a dream for most people living in Pakistan. The rise in inflation and expenses make it impossible for many

Earlier this year, the PTI government announced under its Naya Pakistan Housing Scheme that residents now are able to buy their own house, Low income people will be provided loans by the government.

This facility will allow all individuals, who will be constructing or buying a new house for the first time, to avail bank’s financing at subsidized and affordable markup rates.

Here's all you need to know about the scheme:

Basic Eligibility Criteria

• Citizenship. All Pakistani nationals holding CNIC.
• Home Owner. First time home owner, one unit per household.
• Housing Finance Facility. An individual can have subsidized housingfinance facility under this scheme only once.
• Unit to be Financed. ...
• Collateral Security Requirement.

Application Form - A standardized Application Form both in English and Urdu will require minimum essential information with simple format.

• The processing time will not exceed 30 days after submission of all documents by the borrower and the same will be clearly stated in the application form.

Size of Housing Unit

Size of the loan is segregated into three tiers, as under:

• Tier 1 (T1) - Housing units/apartments of up to 125 square yards (upto 5 Marla) with covered area of up to 850 square feet.

• Tier 2 (T2) - Housing units/apartments of up to 125 square yards (5 Marla) with covered area of up to 850 square feet.

• Tier 3 (T3) - Housing units of more than 125 square yards up to 250 square yards (10 Marla) or apartments with covered area from more than 850 square feet to 1,100 square feet.

Maximum Price of Housing Units

Maximum price (market value) of a single housing unit at the time of approval of financing, as under:

• Tier 1 (T1) - Rs 3.5 million

• Tier 2 (T2) - Rs 3.5 million

• Tier 3 (T3) - Rs. 6.0 million

Maximum Loan size

Maximum size of the loan of a single housing unit, as under:

• Tier 1 (T1) - Rs 2.7 million

• Tier 2 (T2) - Rs 3.0 million

• Tier 3 (T3) - Rs. 5.0 million

Standardised Procedures

• Banks to have standardized loan documents and risk acceptance criteria.

Monitoring

• SBP will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website.

Pricing

For loan tenors exceeding 10 years

Following are the Banks that provide loan under Naya Pakistan Housing Scheme,

• Meezan Bank
• Bank Alfalah Islamic
• HBL Islamic Banking
• Faysal Bank
• Muslim Commercial Bank
• Askari Bank Limited
• United Bank Limited
• Bank Al Habib
• JS Bank
• Standard Chartered Bank