All you need to about Naya Pakistan Housing loan scheme

The State Bank of Pakistan (SBP) said Monday that the government will be providing a markup subsidy facility for the construction and purchase of new houses. "This facility will allow all individuals, who will be constructing or buying a new house for the first time, to avail bank’s financing at subsidized and affordable markup rates," a statement from the SBP said. This facility will be provided with the administrative support of the State Bank of Pakistan as an executing partner with the Government of Pakistan and Naya Pakistan Housing and Development Authority (NADA), it added. 

Here's all you need to know about the scheme: 

Eligibility criteria:

- All men/women holding CNIC

- First time homeowner

- An individual can have a subsidized house loan facility under this scheme only once

- Only for construction and first purchase of newly constructed affordable housing units

Size of Housing Unit 

The size of the loan is segregated into three tiers, as under:

- Tier 1 (T1) - Housing units/apartments of up to 125 square yards (up to 5 Marla) with a covered area of up to 850 square feet. 

- Tier 2 (T2) - Housing units/apartments of up to 125 square yards (5 Marla) with a covered area of up to 850 square feet.

- Tier 3 (T3) - Housing units of more than 125 square yards up to 250 square yards (10 Marla) or apartments with covered area from more than 850 square feet to 1,100 square feet.

Maximum Price of Housing Units 

Maximum price (market value) of a single housing unit at the time of approval of financing, as under:

- Tier 1 (T1) - Rs 3.5 million

- Tier 2 (T2) - Rs 3.5 million

- Tier 3 (T3) - Rs. 6.0 million

Maximum Loan size

Maximum size of the loan of a single housing unit, as under:

- Tier 1 (T1) - Rs 2.7 million

- Tier 2 (T2) - Rs 3.0 million

- Tier 3 (T3) - Rs. 5.0 million 

Loan type 

- Long term housing finance loans.

 Security Requirements

- As per banks’ credit policy and prudential regulations for housing finance, the housing unit financed will be mortgaged in favor of financing banks.

Allocation in Budget

- Finance Division shall give authority to SBP to debit the GOP account on a quarterly basis for the subsidy payment to banks.

- Payment will be made to the banks on submission of quarterly-consolidated subsidy statement as per the format prescribed by the State Bank of Pakistan. 

Executing Agencies 

- All commercial banks including Islamic banks and House Building Finance Company Limited (HBFCL)

Application Form 

- A standardized Application Form both in English and Urdu will require minimum essential information in a simple format.

- The processing time will not exceed 30 days after submission of all documents by the borrower and the same will be clearly stated in the application form.

Standardized Procedures 

- Banks to have standardized loan documents and risk acceptance criteria.

Monitoring 

- SBP will publish consolidated information about the loans extended under this program for information of the public on a quarterly basis on its website.

Pricing

Loan Tiers

Customer Pricing

Bank Pricing

Tier 1

5% for the first 5 years and 7% for the next 5 years

KIBOR+250 BPS

Tier 2

5% for the first 5 years and 7% for the next 5 years

KIBOR+400 BPS (Spread may vary)

Tier 3

7% for the first 5 years and 9% for the next 5 years

KIBOR+400 BPS (Spread may vary)

For loan tenors exceeding 10 years, the market rate will be applicable for the period exceeding 10 years.