Housing Finance: SBP develops Mechanism for Payment of Markup Subsidy
- As per details, SBP has issued necessary instructions to all commercial banks, microfinance banks and HBFCL (Executing Agencies (EAs)) through IH&SMEFD Circular No. 03 dated March 25, 2021 and revised instructions thereof issued from time to time.
The State Bank of Pakistan (SBP) has developed a mechanism for payment of markup subsidy for housing finance.
EAs are advised to submit their claims to Development Finance Support Department (DFSD), SBP BSC, Karachi as per instructions contained in the attached payment mechanism within 15 working days from the end of each Quarter. However, EAs shall submit their claim within 15 working days for the quarter ending December 2020 and March 2021 from the date of issuance of this circular.
As per details, SBP has issued necessary instructions to all commercial banks, microfinance banks and HBFCL (Executing Agencies (EAs)) through IH&SMEFD Circular No. 03 dated March 25, 2021 and revised instructions thereof issued from time to time.
All loans disbursed under the subject scheme shall be reported to SBP under housing finance.
Under the Scheme, loans are segregated into four tiers: i. Tier 0 (T0) - (a) House up to 125 sq yds (5 Marla) and (b) flat/apartment with maximum covered area of 1,250 sq ft. ii. Tier 1 (T1) - (a) House up to 125 sq yds (5 Marla) with maximum covered area of 850 sq ft and (b) Flat/apartment with maximum covered area of 850 sq ft. iii. Tier 2 (T2) - (a) House up to 125 sq yds (5 Marla) and (b) flat/apartment with maximum covered area of 1,250 sq ft. iv. Tier 3 (T3) - (a) House up to 250 sq yds (10 Marla) and (b) flat/apartment with maximum covered area of 2,000 sq ft.
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