Construction and New homes purchasing subsidy of Rs33 billion will be offered by Government

On Monday, 12th October, 2020 the announcement has been made by State Bank of Pakistan (SBP) giving facility to all the individuals who are going to construct or will be buying a new home can benefit of availing bank financing on moderate and subsidized rates. The designated amount of Rs. 33 billion to be financed for 10 years’ time period. Also, they made sure to provide the facility for long term. Naya Pakistan Housing and Development Authority (NAPHDA) and SBP administrative assistance as executing partner with Government of Pakistan will deliver the above facility. The memorandum has also signed by government of Pakistan and State Bank of Pakistan. The subsidy is divided in three tiers and can be accessible from the banks:For Tier I, buying of homes/flats/apartments till 125 square yards or 5 marla covering an area of 850 square feet can avail the financing with the maximum price of Rs. 3.5 million under the project of NAPHDA. The facility under this tier will be maximum 20 years of tenor and Rs. 2.7 million of financing can be availed. To Finance under Tier II, the process is as same as the tier one with minor changes. It is also available up to 125 square yards or 5 marla homes/flats/apartments with an area of 850 square feet and the price of Rs3.5 million. The maximum financing can be done u der tier II is Rs. 3 million for up to 20 years.  The Tier III support the families from middle class facilitating reasonable housing. This tier finance more than 125 square yards or 5 marla houses/flats/apartments to purchase or construct and till 250 square yards or 10 marla covering an area from 850 square feet to 1,100 square feet with cost of Rs. 6 million maximum. This tier can be financed with Rs. 5 million with 20 years of tenor. 

These facilities will benefit the people who will be constructing or buying for the first time. Also, the real estate market also flourish and get potential buyers for their projects.