SBP issues revised markup subsidy for low-cost house financing

KARACHI: The State Bank of Pakistan (SBP) on Thursday issued instructions to the banks for implementation of the revised mark-up subsidy approved by the government for low-cost housing scheme.

In view of the feedback received from various stakeholders, the government of Pakistan (GoP) has decided to revise features of the G-MSS to align it with market dynamics. These revisions aim at significantly enhancing outreach of the scheme to the individuals and households who currently do not own a house.

The maximum loan size has been from Rs2 million to Rs10 million for a minimum 5 years and maximum 20 years loan tenor, depending upon choice of customers.

As per the bank’s credit policy and prudential regulations for housing finance, the housing unit financed will be mortgaged in favour of financing the bank. The Finance Division shall give authority to SBP to debit GOP account on quarterly basis for the subsidy payment to banks. The payment will be made to the banks on submission of quarterly-consolidated subsidy statements as per the format prescribed by the State Bank.

The revised features are applicable with immediate effect. Accordingly, IH&SMEFD Circular No. 11 of 2020 is hereby superseded. However, instructions notified vide IH&SMEFD Circular No. 01 of 2021 will continue to remain applicable.

The SBP directed the banks to ensure successful implementation of revised G-MSS through dissemination of necessary instructions to branches/ regions, capacity building of field staff, alignment of housing finance products and active marketing campaigns, etc.

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  1. Please mujhy karobar karne ka moqa Diya jaye I’m very poor man mein apna ghar sambhalna chata hun mere ghar ki or Meri family ki buhot so wajohat hai koch to eat bhi hai Jo bhik mang Kar apne ghar ka karya or rent pay karty hai in sub ki mein madat karna chata hun

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