State Bank of Pakistan (SBP) announces the government of Pakistan markup subsidy for affordable housing loans on Monday.
According to details, the government will provide markup grants (subsidies) to the public for the construction and purchase of affordable housing.
Under this facility, all those who are building or buying their house for the first time will be able to get bank loans at discounted and cheap mark-up rates. This facility will be provided with the administrative support of SBP.
As per SBP, the government of Pakistan and the Naya Pakistan Housing and Development Authority will be the executive partner.
The government of Pakistan has allocated Rs33 billion for the repayment of mark-up subsidy on loans over a period of ten years. For this, the State Bank of Pakistan and the government of Pakistan has signed a Memorandum of Understanding (MoU).
The details revealed that loans are available for the purchase of houses/apartments/flats up to 125 square yards with a maximum value of Rs3.5 million. A maximum loan of Rs. 2.7 million will be given for a maximum period of 20 years. The maximum markup rate of banks will be 250 basis points.
The Government of Pakistan will also provide a markup subsidy to borrowers to reduce the markup for the first 5 years to 5%.