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Are you interested in availing PM’s housing loan facility?

11:39 AM | 16 Jul, 2020
Are you interested in availing PM’s housing loan facility?

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.

Ahsan Raza is a Lahore-based journalist. He blogs at http://ahsanrwrites.blogspot.com/ and tweets @AhsanRazaBudh. His story is part of the Pakistan Press Foundation fellowship.

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PKR exchange rate to US dollar, Euro, Pound, Dirham, and Riyal - 21 Feb 2024

Pakistani currency remains stable against US dollar and other currencies in the open market on February 21, 2024 (Wednesday).

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.6 for buying and 282.4 for selling.

Euro comes down to 300 for buying and 303 for selling while British Pound rate stands at 350.5 for buying, and 354 for selling.

UAE Dirham AED hovers at 76.15 whereas the Saudi Riyal saw slight increase, with new rates at 74.35.

Today’s currency exchange rates in Pakistan - 21 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.6 282.4
Euro EUR 300 303
UK Pound Sterling GBP 350.5 354
U.A.E Dirham AED 76.15 76.9
Saudi Riyal SAR 74.35 75.1
Australian Dollar AUD 181 183
Bahrain Dinar BHD 743.32 751.32
Canadian Dollar CAD 207 209
China Yuan CNY 38.89 39.29
Danish Krone DKK 40.38 40.78
Hong Kong Dollar HKD 35.74 36.09
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.10 2.18
Kuwaiti Dinar KWD 902.41 911.41
Malaysian Ringgit MYR 58.6 59.2
New Zealand Dollar NZD 171.68 173.68
Norwegians Krone NOK 26.43 26.73
Omani Riyal OMR 725.96 733.96
Qatari Riyal QAR 76.76 77.46
Singapore Dollar SGD 207 209
Swedish Korona SEK 26.53 26.83
Swiss Franc CHF 316.9 319.4
Thai Bhat THB 7.93 8.08

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