Who does not want the luxury of having their own home?
It is the dream of most of us. Living in a rented house may become frustrating and annoying. Privacy and comfort are usually absent in rented spaces and oh… don’t forget the sky-high utility expenses. A place you can call home is indeed a blessing.
However, building a home in today’s era can be very difficult due to the increasing cost of raw material and labor. Thankfully, some banks are providing home financing for Pakistani people.
All you have to do is pay a certain amount of money every month to the bank. This makes the whole construction process easier and more practical. A person belonging to the middle class and upper-middle-class can enjoy the perks of their very own home, all thanks to home financing.
We have outlined a very useful and thorough comparison among different banks so that you can see how the whole loan thing works.
Before starting off with the article, we would like to highlight that the costs and interest rates mentioned in the content are for Islamabad. The interest rates, terms, and conditions may differ in other cities.
Also, these figures are related to an average 5-marla house in Islamabad. The cost of construction is taken as Rs. 26 lac, and the payback period is 15 years.
You can change the cost of construction, income bracket and payback period according to your preference. The primary objective of this article is to educate people about the interest rates, processing fees and basic requirements of every bank.
If you want to know about the breakdown of construction costs of a 5-marla house, then do check out cost to construct 5 marla house where we have sketched all the costs associated with the grey structure of a 5-marla house.
APR stands for annual percentage rate. It is the annual interest rate that the person has to pay the bank. Secondly, the repayable amount is the total amount (principal amount and interest amount) that the person has to pay back to the bank.
List of Banks Providing Home Loans in Pakistan
- Bank Alfalah
- Askari Bank
- Bank Al Habib
- JS bank
- Meezan Bank
- Standard Chartered
- Summit Bank
- Bank Islami
- Bank of Punjab
- MCB Islamic Bank Ltd
- National Bank of Punjab
- Faysal Bank
- Dubai Islamic Bank
- Allied Bank Limited
- Khushhali Microfinance Bank
- Silk Bank
1. Bank Alfalah
Alfalah Home Finance is giving home loans on easy terms and conditions. You can apply for a loan amount starting from Rs2 million to Rs. 50 million, payable in 36 to 240 monthly installments.
The minimum salary requirement for the filer is Rs. 70,000, and the age limit is 23-60 years. Documents required for loans include CNIC, salary slips, 12-month bank statement, and two years of employment under the current employer.
Website: Bank Alfalah
Through ‘HBL Home Loan,’ you can apply for a loan amount starting Rs2 million to Rs. 15 million, payable in 60 to 240 monthly installments. HBL is also offering a loan calculator on their website that you can use to calculate the loan amount.
The minimum salary requirement for HBL is around Rs. 100,000. The person should be 22-60 years old. The documents required are CNIC, salary slips, 12-month bank statement, minimum 5-year experience, Pakistani nationality (Resident & nonresident Pakistani), and a letter from employer.
You can apply for a loan amount of up to Rs. 25 million, payable in 12 to 240 monthly installments.
The person should have a monthly salary of Rs. 50,000, and should be 21-60 years of age. The documents required include CNIC, salary slips, 12-month bank statement, and proof of Pakistani residency.
4. Askari Bank
Askari bank offers loan amounts starting from Rs. 500,000 to Rs20 million, payable in 36 to 300 monthly installments.
Just like MCB, the minimum salary requirement for Askari Bank is Rs. 50,000. The age limit is 22-60 years, and the documents needed for further processing include CNIC, salary slips, and 12-month bank statement.
Website: Askari Bank
You can apply for a loan amount starting from Rs. 1 million, payable in 36 to 240 monthly installments.
To get the loan, the person should have a monthly income of Rs. 50,000. They should be 23-65 years old. The papers needed are CNIC, salary slips, 12-month bank statement, proof of Pakistani residency, and proof of 12 years of employment.
6. Bank Al Habib
Like other banks, Bank Al Habib is also providing a loan starting from Rs. 300,000 to Rs. 20 million, payable in 240 monthly installments.
The minimum salary requirement is Rs. 60,000 and the age limit is 23-60 years. The things needed for the paperwork include CNIC, salary slips, and 12 monthly bank statement.
Website: Bank Al Habib
7. JS Bank
JS Bank offers home loans ranging from Rs. 500,000 to Rs. 100 million, payable in 12 to 240 monthly installments.
For JS Bank, the salary bracket is a bit high. The minimum salary requirement is around Rs. 70,000. The person should be 21-60 years old and should have CNIC, salary slips, and 12-month bank statements with them.
Website: JS bank
8. Meezan Bank
With Meezan Bank, you can apply for a loan amount starting from Rs. 500,000 to Rs. 50 million, payable in 24 to 240 monthly installments.
Meezan Bank gives loans to a person who has a monthly income of around Rs. 40,000. The age bracket is 25-65 years, and the papers required for further processing include salary slips, 12-month bank statement and 2-year employment proof.
Website: Meezan Bank
9. Standard Chartered
Saadiq Home Financing division of Standard Chartered is also giving loans. Like HBL, this bank is also providing an online loan calculator for its customers. You can apply for a loan amount starting from Rs3 million to Rs30 million, payable in 12 to 240 monthly installments.
With Standard Chartered Bank, the financing is available for up to 75% of property value. The salary requirement and age requirements are Rs. 50,000 and 21-60 years, respectively. If you are interested in getting a loan from SC, then do bring your CNIC, salary slips, 12-month bank statement and a letter from your employer with you.
Website: Standard Chartered
10. Summit Bank
Summit Bank allows its valued customers to apply for a loan amount starting from Rs. 300,000 to Rs. 100 million, payable in 12 to 240 monthly installments.
The base pay for the Summit Bank is Rs. 80,000, and the age limit is 23-60 years. The documents needed for formal paperwork include CNIC, salary slips, 12-month bank statement, and letter from employer.
Website: Summit Bank
11. Bank Islami
Bank Islami is also offering home financing, starting from Rs. 200,000 to Rs. 50 million, payable in 24 to 300 monthly installments.
The minimum salary requirement is Rs. 51,000, and the age limit is 25-65 years. Bank Islami requires CNIC, salary slips, 12-month bank statement, 6-month employment proof, and last 6 months utility bills for documentation.
Website: Bank Islami
12. Bank of Punjab
The BOP is also offering home financing from Rs10 million and above, payable in 240 monthly installments.
The person should be earning around Rs. 40,000. They should be 21-60 years old. They should also have CNIC, salary slips, bank statement and a copy of utility bills with them.
Website: Bank of Punjab
Al-Baraka is giving out loans starting from Rs0.3 million to Rs. 35 million, payable in up to 240 monthly installments.
The minimum salary requirement is Rs. 50,000, and the person should be around 21-60 years of age. The documents required include CNIC, salary slips and bank statement.
14. MCB Islamic Bank Ltd
MCB, being one the leading banks of Pakistan is also giving a loan amount up to Rs. 30 million, payable in 24 to 240 monthly installments.
The minimum salary requirement is Rs. 60,000. Your age should be around 25-65 years. The documents needed are CNIC, salary slips, bank statement and minimum of five years in service.
Website: MCB Islamic Bank Ltd
National Bank of Punjab is also providing home loan to its valuable customers on easy terms and conditions. NBP home loan is providing best home loan rates in Pakistan because of its variable annual return policy.
Under the NBP Saibaan program, the bank is providing construction loans and purchase loans to its customers. The maximum amount that you can get is around Rs.35 million for a period of 3 to 20 years.
To avail the loan, the person should be at least 22 years old with a net income of around Rs.10, 000 (if he or she is a government employee) and Rs.15000 (if he or she is privately employed).
To apply for the loan, you need to have the following documents with you:
- Two attested passport size photographs.
- Two attested copies of your CNIC.
- Two attested copies of CNIC of references.
- Cheque for the processing charges.
- Cheque in favor of legal counsel for a legal opinion.
- Cheque in favor of Valuator for valuation report.
- Cheque in favor of income Estimation Company for income estimation report, if applicable.
- Property Documents: attested copy of title documents available.
- Bill of quantity (BOQ) in the case of HC and LPC.
Website: National Bank of Punjab
The home loan program of Faysal Bank operates under the diminishing Musharakah principle. In this program, the bank and the customer purchase the asset jointly. The bank then rents out its share of units to the customer.
When all the units are being paid by the customer, the asset gets shifted in the name of the customer and he becomes the sole owner of that specific property.
Currently, the following types of loans are available:
- Home purchase.
- Home builder/ Plot + construction.
- Home renovation.
- Home re-finance (Transfer existing home finance facility).
To avail the loan, the person should be a citizen of Pakistan. The salaried person should have a net income of Rs.100, 000 and the age limit for the loan is between 21 to 60 years of age.
Following documents are required by the bank for the application process:
- Copy of CNIC.
- 2 passport size photographs.
- Last six months’ salary slips.
- Salary certificate / employment certificate (Designation, date of Joining, permanent – status, salary Breakup).
- Last 12 months bank statement (Original).
- Copy of complete property documents.
Website: Faysal Bank
If you are looking for home loan without interest in Pakistan, then consider this bank. Dubai Islamic bank is also providing home loans for its customers, that too without any Riba (a concept in Islamic banking that refers to charged interest). So, all those people who do not want to get involved with any kind of interest can opt for this bank as it provides loans up to Rs.75 million.
Musharakah agreement will occur between the customer and the bank. The bank will purchase the asset for the customer and then it will lease out that property to the customer. When the amount of the loan will be paid in full, the bank will shift the complete ownership to the customer.
Following types of home loans are being provided by the bank:
- Home purchase.
- Home renovation.
- Purchase of undivided share of property mortgaged by other banks (Balance transfer).
- Construction finance.
- Age: 25 to 60 years old.
- Monthly income: Rs.40, 000 for salaried employees and Rs.50, 000 for self-employed.
Website: Dubai Islamic bank
- Copy of primary applicant’s CNIC
- Copy of co-partners CNIC
- 2 passport size photographs
- Tax returns
- Copy of utility bill
- Professional degree (for self-employed professionals only)
- Salary certificate/proof of profession
- Latest salary slip
- Bank statement of the last 12 months & bank certificate
Allied Bank Limited is one of the most famous banks in Pakistan that is providing home loans on easy terms. If you are a Pakistani citizen within the age bracket of 25 to 57 years and have a net income of 50,000 per month then you are eligible for the home loan.
You can get Rs.40 million in loan and you can repay it within 3 to 25 years, depending upon your preference and budget.
However, unlike many banks, Allied bank requires you to have a prior relationship of around 6 months with a bank.
Following types of loans from the bank are available at the moment:
- Home/apartment purchase
- Home construction (Land already owned)
- Home renovation
- Buy land & construct home
- Last six months’ bank statement (ABL / any other bank, as the case may be)
- Copy of CNIC/ Smart NIC
- Proof of income
- Complete and duly signed “Application Form”
Website: Allied Bank Limited
Khushhali Microfinance Bank is providing home loans for renovation and repairs. If you are someone who wants to renovate their house and are looking for finances, consider this bank. Khushhali Bank is providing home loan up to Rs.1000, 000. Your tenure for the month is between 6 to 120 months.
- Age: 25 -60 years (65 years for pensioners)
- Annual income of applicant should be equal to or less than PKR 600,000 per year
- Residing in the house/ ownership of the house (if the property has been given on rent) for at least 1 year
- Salaried individuals must be working with the current employer for at least 2 years
- 2 years of business experience
- NADRA CNIC/ SNIC holder
Website: Khushhali Microfinance Bank
Silk bank is also providing home loans to its customers on easy installments. It is considered to be one of the best banks for home loan in Pakistan.
An eligible person can get a loan amount up to Rs.2 million and the tenure to return the money is between one to 5 years. You do not have to give security on the loan as well.
- Pakistani residents
- Foreign nationals with approved company guarantee
- Salaried individuals
- Age: 21-65 years
- Income: minimum Rs.40,000 monthly
Website: Silk bank
All the content provided in this blog post is for educational purpose. The information provided in this article is should be considered for educational/ entertainment purpose only.
Any action that you take upon the information on this website is strictly at your own risk. For more information on home loans, visit the bank’s website.
There are many home loan calculators in Pakistan. If you want to calculate and compare costs, then you can use Home Loan Calculator.
Currently, no bank is providing interest-free loans in Pakistan. However, the banks that we have mentioned above are offering loans on easy terms. If you meet all their requirements, you can easily get a loan against property in Pakistan.
Browse these banks and their terms and then decide which bank is best for your home loan in Pakistan.
Are you someone who has already received a home loan from any bank? If yes, then do share your personal experiences related to bank loans. We would love to hear from you.
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