Govt to launch Rs100 billion housing loan scheme for 50000 homes

The federal government is preparing to greenlight funding for 50000 homes, with Rs100 billion allocated for the ongoing fiscal year. 

The plan aims to help people buy their first house or flat through long-term, easy housing loans. This scheme offers loans for up to 20 years. For the first 10 years, the loan will carry a reduced interest rate. After that, the borrower will pay the standard market rate. Banks and other lenders will get 10 percent risk coverage on unpaid loan amounts to encourage their participation.

According to the plan, Tier-I applicants can borrow up to Rs2 million, while Tier-II applicants can get up to Rs3.5 million. The interest rate will be based on the one-year KIBOR plus 3 percent. There will be no processing charges or penalties for early repayment. People can apply for loans to purchase houses up to 5 marla or flats not larger than 1,360 square feet. Several financial institutions, including commercial banks, Islamic banks, microfinance banks, and the House Building Finance Corporation Limited (HBFCL), will take part in this scheme.

The goal of this housing plan is to support the middle and lower-income population in owning homes while also encouraging investment in the housing sector.