Friday, March 31, 2023

Banks giving Rs59bn loans for govt’s housing scheme: SBP

Banks authorized around Rs59 billion in loans under the government’s flagship markup subsidy plan Mera Pakistan Mera Ghar till the end of August.

The State Bank of Pakistan (SBP) stated on Wednesday that financing for the home finance program has picked up momentum as a consequence of several steps implemented by the bank and government assistance.

According to the SBP, since the scheme’s inception last year, banks have received applications totaling Rs154 billion, with funding of more than Rs59 billion authorized as of August 31.

By the end of last month, disbursements under the plan had reached Rs11.5 billion, representing a 49 percent increase from August 2021.

“On average, banks have approved 38 percent of the amount asked for, and 19 percent of the authorized amount has been disbursed,” the central bank stated.

These approval and disbursement percentages have also grown in recent months, as banks have made the necessary upfront investments in procedures and technology to handle low-cost home applications.

Banks released funds at various phases of development or acquisition. As a result, the rate of disbursement is determined by the rate of construction and the completion of the purchase process.

Banks are accepting applications from over 8,000 specialized branches across the nation in the SBP’s directions. Under the program, the central bank has also assigned goals to each bank. Each bank has created an e-tracking system, as well as a specialized shared call center to assist applicants.

The plan has the full backing of the Naya Pakistan Housing Development Authority and the Pakistan Banks’ Association, a bank-representative group.

The central bank anticipates that with continued efforts by it, the government, and banks, bank financing for the plan would gain traction in the coming days.

However, the construction sector is very doubtful of the success of the government’s housing program on a broad scale, as the cost of building has skyrocketed owing to inflation and currency depreciation.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments
Latest news
Would love your thoughts, please comment.x