According to the news source, the Economic Coordination Committee (ECC) had issued the approval of provision of funds that are of worth PKR 23.6 billion. These funds are allocated for housing loans so that the government can assist the country’s low and medium-income families by providing reasonable housing.
Some other funding provided by the government is explained bellow.
- The committee additionally allowed extra allowance of PKR 4.7 billion to overcome the cost of interest for people who borrow the housing loan. The committee also accepted that people can pay back their loans in 20 years. This loan is provided to people who construct houses of 3-, 5- and 10-marla.
- Likewise, funds of PKR 23.6 billion have been accepted against 10-year financing needs at the current Karachi Interbank Offered Rate called Kibor of 6.89%. But this grant can be increased. if the State Bank increases the grant.
- For 3-marla houses units, the borrower can acquire a subsidy of up to PKR 2.7 million against the house with a maximum cost of PKR 3.5 million.
- In case of 5-marla houses units, the borrower can acquire a subsidy of up to PKR 3 million.
- In case of 10-marla houses units, the borrower can acquire a subsidy of up to PKR 5 million.
- If we talk about mark-up rates on 5 marla houses, then the mark-up will be 5% for the first five years and 7% for the remaining five years of the subsidized rates.
- And for 10 marla housing units, the mark-up will be 7% for the first five years and 9% for the next five years.
- PKR 23.6 billion subsidy will be distributed in the following way:
- PKR 7.4 billion will be given to the homes of Naya Pakistan Housing and Development Authority up to 5 marlas.
- PKR 10.5 billion will be assigned for 5-marla houses in projects done by non-housing authority.
- PKR 5.8 billion will be assigned for 10-marla houses in projects done by non-housing authority.
- The loans can be paid up to 20 long years but the government will not give mark-up cost after 10 years. If we talk about 5-marla houses, the government will pick 4.4% in interest cost for the first five years and 2.4% for the next five years.