How To Get Low Cost House Loan under Government scheme

 

How To Get low-cost house loans-procedure

The Government of Pakistan is giving loans under low-cost housing scheme under the Naya Pakistan project. There are many questions about how to get a low-cost house loan for the construction of own house. 

Many people are unaware of the procedure to apply for low-cost house loans. Most think that getting low-cost house loans will be complicated like usual bank loan procedures. The procedure of acquiring a low-cost house loan is very simple. Here are steps to get low-cost house loans from Pakistani banks: 

• Visit your nearest bank branch. 

There are nearly 14,000 bank branches across Pakistan designated for low-cost house loans. Half of these branches are designated to receive and designate house loans. Almost all Pakistani banks are giving low-cost house loans.

• Get application form

The application form is very simple to understand for a common man.

• Provide personal details like their names, CNIC numbers, age, and addresses, along with information about your occupation and income detail.
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  How to get low cost house loan

  
  
  
  
  
  
• Choose the loan category whether you want to construct a house or buy a new one. 
• Choose loan Tier. These loans are being provided for three different tiers of homes.
• Choose the loan amount as per the chosen tier
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  Steps to Get low cost house loans

  
  
• Select the installment plan

• Applicants will have to provide 10% of the loan amount as equity or downpayment. 
• The remaining 90% will be financed by banks.

• The loan will be issued within 30 days.

Earlier, the banks ask loan applicants to provide 30% amount themselves and they finance only 60-70% amount but it has changed in low-cost loans.

Installments plan

A significant component of any loan is an installment plan.

 In a low-cost house loan, an applicant will have to pay only Rs6,600 a month in case they acquire an Rs1 million loan for the first five years in a low-cost house loan. 

The installment amount jumps to Rs7,500 a month for the next five years.

How to get government low cost house loan-installment 

Note: The banks require the applicant's monthly income to be double the amount of the monthly installments.

Salient Features of Low Cost House Loan of Government

• Financing Period: up to 20 years
• Loan Financing: up to 50 Lac (10 lakhs-50 lakhs)
• Processing Time: 30 days
• Start: 5% lowest rental rate
• Up to 10.99% Rental
• Processing fees: Rs 6000/-
• Monthly installment up to Rs 6,600 for the loan of Rs 10 Lakhs with the tenor of 20 years
• Loan for construction or buying house or apartment
• Collateral Security is a Requirement 
• The financed housing unit will be mortgaged in the favor of respective bank as per the policy and SBP prudential regulations. 

Eligibility Criteria for a low-cost house loan

• Pakistani citizen holding a valid CNIC

• First time buyers- Applicants should not be owning a house

• Individuals can avail of this offer only once

Click to know Documents required for a low-cost house loan

Click to know the list of banks giving government advised low-cost loan

The government has also announced a fixed tax regime and many tax exemptions for the construction industry.