Here is a step-to-step guide to understanding the loan offer
If you are planning to construct your own house, the best time is about to come to realize your dream. On July 10, Prime Minister Imran Khan unveiled his government’s landmark housing scheme under which a Rs 30 billion subsidy will be provided to the eligible applicants under the Naya Pakistan Housing Project.
The good news is that applicants can avail loan on a five percent rate for a five-marla house and seven percent markup for a 10-marla house.
To make the process quick and smooth, all finance awarding institutions will offer loans in a one-window operation. If you are interested in the loan facility, here are the key things.
Eligibility
All salaried, self-employed people (doctors, engineers, shopkeepers), business people, and non-resident Pakistanis are eligible for the loan.
The applicant should have a plot of either five or 10 marlas. In case of land exceeding 10 marlas, the subsidy will not be offered. Similarly, plots lower than five marlas do not fall in the scheme.
Only one person per family (husband, wife, and children) is eligible to apply in the scheme. Preference will be given to candidates who do not own any independent residential unit in Pakistan.
Terms and procedures
Loan will be offered against land and personal guarantees. Loan will be offered only for the construction of a house.
Those who want to buy a new house or renovate their existing house should not apply for the subsidized loans.
Loan will be offered as per the valuation of the property – higher the value or the property, more loan offer. An applicant can ask for the loan sum in one to four tranches.
Loan repayment plan ranges from three years to 25 years. Repayment can be done in unequal monthly installments too.
How to apply for the loan?
Despite the announcement of the prime minister regarding the subsidy for the housing sector on July 10, so far financial institutions have not received any instructions from the government regarding the provision of the loans.
The likely procedures will be:-
Download form from the website of a bank.
Fill up the form and attach land ownership deed, photograph, computerized national identity card’s (CNIC’s) copy, personal guaranteers’ credentials, and their CNIC copies and approved map of the house.
If the map does not justify the sum sought, the application will be rejected. A loan application will be processed within a week if no discrepancy is found in the credentials mentioned in the form.
When will the repayment of the loan begin?
The first installment is due once the construction phase is over, which is likely to be three to six months after the loan sum is delivered to the applicant.
The flurry of construction activities may increase the prices of the construction material. Viewing the likely price hike, the prime minister in April announced a tax amnesty scheme for the estate and construction sectors. The scheme is valid on December 31.
In case of default on installments
The government has introduced a mortgage scheme, under which the loan awarding body can confiscate the unit.
When will the repayment of the loan begin?
The first installment is due once the construction phase is over, which is likely to be three to six months after the loan sum is delivered to the applicant. The flurry of construction activities may increase the prices of the construction material.
Viewing the likely price hike, the prime minister in April announced a tax amnesty scheme for the estate and construction sectors. The scheme is valid on December 31. This is a no-questions-asked amnesty for those who will invest in the real estate and construction sectors.
The scheme does not benefit the following incomes or people: Owner of public office, benamidar or their spouse or dependents; or Such public listed company, real estate investment trust, or any company whose income is exempt under the Ordinance Earnings generated through crimes such as money laundering and terror financing.
