- Mera Pakistan Mera Ghar (MPMG) scheme by banks is getting traction, latest data by State Bank of Pakistan shows
Latest data by the State Bank of Pakistan (SBP) has revealed that loan approvals and disbursements under the government’s flagship markup subsidy scheme, commonly known as Mera Pakistan Mera Ghar (MPMG) scheme by banks is getting traction.
Loan approvals per week reached Rs4 billion and disbursements per week stood at Rs1.6 billion in November.
Since the launch of the scheme, applications of Rs 245 billion under MPMG have been received and banks have approved housing finance of about Rs 100 billion up till November 30, 2021.
Similarly, the pace of disbursement under MPMG that was initially slow, has also picked up. By November 30, 2021, disbursement under the scheme reached Rs28.7 billion, while in the same month Rs6.5 billion worth of amount alone was disbursed.
On average, to date, banks have approved 41% of the amount applied while 29% of the approved amount has been disbursed.
These approval and disbursement ratios have similarly risen over the past few months as banks have put in place the needed upfront investment in procedures and technology to process applications for low-cost housing.
Since the announcement of MPMG scheme last year, the SBP has taken various enabling steps such as introducing standardized and simple application form; adopting an informal income assessment model; providing relaxations in prudential regulations; establishing helpdesks at all the SBP field offices; and, designing a complaint portal supported by a network of focal persons of all banks across all geographical areas.
Back in October, MPMG – Helpline, a joint call centre of banks was launched for the convenience of low-cost housing borrowers across Pakistan.
The main purpose of this helpline is to provide a one-stop solution for product information on low-cost housing loan facilities across banks, explain and guide borrowers on policy, procedures, and documentation requirements for availing low-cost housing loans.