SBP Reduced Mark Up on Naya Pakistan Housing Scheme

State Bank of Pakistan has further reduced the mark-up on Naya Pakistan Housing Scheme loans through commercial and microfinance banks.

State Bank of Pakistan has divided the mark-up subsidy into four different slabs depending upon house loan tenure.

Bank house loan under Naya Pakistan Housing Scheme can be obtained for a period of minimum 5 years and maximum 20 years.

The Mark up for the first years has been reduced 1% from 3% to 2%.

For 6 years to 10 years, the markup has been reduced from 5% to 4%.

The mark up on house loans under this scheme from 11 years to 15 years will be 5%.

The Mark up from 16 to 20 years will be Kibor plus 2.5%.

Kibor may fluctuate from time to time and the current Kibor or policy rate is 9.75%.

The Naya Pakistan Housing project was announced on 19th May 2019 under the current Govt initiative of providing low-cost house loans to the deserving people who do not possess a house already on their name.

PTI Govt with the help of SBP engaged commercial and microfinance banks to provide subsidized mark-up loans for all those who need a house.

Since this Scheme was launched, banks received loan requests of Rs.278 Billion and the disbursement amount till now is Rs.117 Billion.

People are still having problems with home loans through commercial banks due to heavy documentation and difficult procedure adopted by banks.

The borrowers also face difficulties in providing documents of the house which they want to mortgage earlier to house loan disbursement as owners hesitate for providing even the photocopies of the house.

It’s cheaper to get a house loan for a shorter period of time because there is more subsidy for earlier years and the rate of mark up is increased as the loan tenure is increased.

For a shorter period, when the mark-up will be reduced but the installment amount may be heavy.

Find more detail on SBP Exclusive page for Naya Pakistan Housing Scheme.


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