The House financing industry in Pakistan has still a long way to go, but it is slowly gaining traction. With an increase in population and migration flow, especially in the big cities of Pakistan, demand for better housing facilities is growing. To cater to this demand, the house financing industry is also seeing some rapid changes and developments. 

Variety of Home Loans

Financial institutions such as banks have many well-established home Loan schemes that cater to the different aspects of society. Features of these home loans vary depending on people’s needs and requirements of different socio-economic sections of society. 

Home Loans for Marginalised Communities and Shariah Compliance 

Certain banks also provide home loans that cater specifically to marginalized communities. Many banks can also offer loans compliant with shariah, giving customers the option to choose a home loan scheme that best suits their needs.

Following is a list of some of the top banks of Pakistan providing home loans, along with some of their salient features:

• Bank Al Habib 
• Habib Bank Limited HBL
• JS Bank
• Meezan Bank
• Muslim Commercial Bank MCB
• Standard Chartered 

Bank Al Habib

Home Loan Model and Loan Amount at Bank Al Habib

The loan amount at Bank Al Habib is divided in such a way that it ranges between PKR 0.3 Million to 50 Million for home buying and PKR 0.3 Million to 35 Million for home construction.

The loan model is such that it is based on reimbursement stages, i.e. at the foundation level, individuals get a 30% loan, at structure level, individuals get another 30%, and at the finishing level, they qualify for the final 40% of the home loan. Financing options are further divided into two categories: a loan for buying a new house and a loan for construction on land you already own / for under-construction homes. 

Eligibility for Home Loan at Bank Al Habib

For eligibility, individuals must already be BAHL customers with a valid CNIC from NADRA and for NICOP holders must have business or employment in Pakistan. For co-borrower, only spouses can be eligible with a minimum income of PKR 30,000.

For further information visit: Bank Al Habib Housing Finance 

Habib Bank Limited HBL

HBL home loans are very extensive and have separate payment plans for buying, building and renovating. The payment plans can be further categorized into salaried individuals and self-employed individuals. They provide free property insurance at all times and both fixed and variable markup rates. 

Home Loan Model and Loan Amount at HBL

The loans are divided into three categories: loan for buying a new home, loan for construction on land you already own, and loan for home renovation.

For salaried individuals, if they are existing HBL account holders, a minimum monthly income of PKR 100,000 qualify them for the loan, whereas for new bank customers minimum monthly income of PKR 150,000 makes them eligible for a loan. For overseas residents, a Pakistani co-borrower is a must. 

For self-employed individuals, if they are existing HBL account holders, a minimum monthly income of PKR 150,000 qualifies them for the loan, whereas for new bank customers minimum monthly income of PKR 200,000 makes them eligible for a loan. 

For further information on home loan financing visit: Habib Bank Limited Home Loan 

For Islamic home finance options visit: Habib Bank Islamic Home Finance 

JS Bank

Home Loan Model and Loan Amount at JS Bank

Loan amounts at JS Bank are divided into two categories: one for building and one for buying. For construction, the loan ranges between PKR 500,000 to PKR 100 million, and for buying the home loan ranges between PKR 500,000 to PKR 100 million.     

To be eligible for the home loan, individuals must have a computerized CNIC or NICOP and present original salary slips and account statements.

For further information visit: JS Bank Home Finance 

Meezan Bank

Home Loan Model at Meezan Bank

At Meezan Bank, the loan amount varies between PKR 500,000 to PKR 50 million for Salaried, SEP, NRP & Businessmen customers.

Meezan Bank home loans follow a shariah-compliant payment model. Financing options are such that individuals qualify for a loan for buying a new home or for a loan for pre-owned land or under construction homes. 

Meezan Bank offers two payment plans – UMI Model and Step-up Model. Both the models are Shariah-compliant structures that provide ease of repaying the debt.

For more information regarding Meezan Bank home loans please visit: Meezan Bank Easy Home 

Muslim Commercial Bank MCB

Eligibility Criteria for Home Loan at Meezan Bank

MCB also has three financing options: loan for buying a new home, loan for construction on land you already own, and loan for home renovation.

To be eligible for the loan, individuals must go through a verification process and satisfactory bureau checks. Loan amounts range depending on the reason for the loan. For example, for home purchase, the loan amount is set as PKR 50 million, for home construction loan amount is set at PKR 25 million and for home renovation loan amount is set at PKR 15 million.

For further details visit: MCB Home Loans

Standard Chartered

Eligibility Criteria for Home Loan at Standard Chartered

Standard Chartered presents an Islamic compliant home loan scheme by the name of Sadiq Home Finance. The loan can be availed either for constructing a new home, renovating an existing home and adding an extension, or adding availing enhancement over an existing loan.

In order to be eligible for this loan applicants must be from the following cities:

• Karachi
• Lahore
• Islamabad
• Rawalpindi

Applicants must present a valid copy of CNIC, employment letter and salary slips or bank statements.

For further information visit: Standard Chartered Home Finance 

Conclusion

We hope that this article has provided some helpful information regarding home loan schemes in Pakistan. The home financing industry is still developing in Pakistan, so there is minimal information regarding home loans in the general public. 

This blog aims to generate awareness about home loan schemes and make people aware of the many options they have at their disposal. With the growth in demand, home loans schemes are the only sensible way to go forward. 

To know more about banks providing home loans in Pakistan, please read banks providing home loans in Pakistan.

Additionally one can also visit banks and their websites to gather more information about eligibility.