Banks disburse Rs11.5 billion under affordable house financing scheme
KARACHI: The State Bank of Pakistan (SBP) on Wednesday said the banks have disbursed Rs11.5 billion under the government’s flagship markup subsidy scheme for the purchase of housing units.
The SBP said by August 31, 2021, the disbursement under the scheme reached Rs11.5 billion, showing an increase of around Rs3.8 billion, or 49 per cent, in August 2021.
The central bank said as a result of numerous measures it took and full support of the government, the bank lending for the government’s flagship markup subsidy scheme, commonly known as Mera Pakistan MeraGhar (MPMG), has picked up momentum.
Since the launch of the scheme, applications of Rs154 billion under MPMG have been received by the banks and they have approved housing finance of over Rs59 billion till August 31, 2021.
Similarly, the pace of disbursement under MPMG that was initially slowed down because of a number of factors, including availability of housing units, has also picked up momentum.
On an average, to-date the banks have approved 38 per cent of the amount applied and 19 per cent of approved amount has been disbursed.
These approval and disbursement ratios have similarly risen over the last few months, as the banks have put in place the needed upfront investment in procedures and technology to process applications for the low-cost housing.
The banks disbursed amounts in different stages of construction or purchase. Thus the pace of disbursement is contingent upon the speed of construction and completion of the purchasing process.
Since the announcement of MPMG scheme last year, the central bank has taken various enabling steps such as introducing standardised and simple application form; adopting informal income assessment model; providing relaxations in the prudential regulations; establishing helpdesks at all SBP field offices; and, designing a complaint portal supported by a network of focal persons of all banks across all geographical areas.
On the instructions of the central bank, the banks are accepting MPMG applications from over 8,000 dedicated branches across the country. Further, the SBP has also allocated targets to each bank under MPMG.
An e-tracking system within each bank and a dedicated joint call center for the facilitation of the applicants have also been established. Naya Pakistan Housing Development Authority (NAPHDA) and Pakistan Banks’ Association (PBA), a representative body of the banks, are fully supporting MPMG.
It is expected that with the ongoing efforts by the SBP, the government and banks finance for MPMG will gain further momentum in the days to come.
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