KARACHI: In a bid to promote low-cost-housing and construction finance, the State Bank of Pakistan (SBP) has introduced new regulatory incentives for banks.
The value of the housing unit increased to Rs3.5 million from Rs3 million, with a maximum loan size now increased to Rs3.15 million, from Rs2.7 million.
The increase in the minimum loan facility caters the commercial banks to enjoy more markup subsidy facility on the credit, along with the low-cost housing finance incentives as well.
Moreover, the central bank relaxed the condition of the documented source of income, allowing people to apply for low-cost housing easily.
The Banks have been directed to devise alternative methods for the identification of income sources and assessment of the creditworthiness of the borrower, as announced by the SBP.
To further accommodate the borrowers to easily avail the loan, the commercial banks have also been granted permission to skip the Internal Credit Risk Rating System (ICRRS), till September 30 2020.
For news and blogs, visit Graana.com.