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
|Loan Tenure||20 years|
|Financial Limit||PKR 0.3 Million to PKR 50 Million|
|Repayment Tenure||equal monthly installments, 1-25 years|
|Age Bracket||25 – 60 years||maximum 65 years|
|Work Experience||2 years of permanent service and net monthly take-home salary of PKR 60,000||3 years of valid business proof with minimum PKR 100,000/- net monthly income|
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.
|Loan Tenure||Ranging between 5-20 years|
|Financial Limit||PKR 2,000,000 to PKR 40,000,000|
|Repayment Tenure||5-20 years|
|Age Bracket||25-60 years||30-65 years|
|Work Experience||Permanent with 5 years of work experience||Minimum 5 years in personal work|
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
|Loan Tenure||1 – 20 years|
|Financial Limit||PKR 5 lakh – 2 crore|
|Work Experience||Income Documents and Salary Slips||Income Documents and Salary Slips|
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
|Loan Tenure||Up to 25 years|
|Financial Limit||PKR 500,000 to 5 Million|
|Repayment Tenure||3 – 20 years (Financing Tenure)|
|Age Bracket||25 – 65 years||25 – 65 years|
|Work Experience||Permanent job with a minimum of 2 years work experience||Minimum of 3 years in the current business|
|Salary||Gross income of PKR 40,000 per month||Gross income of PKR 75,000 per month|
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
|Loan Tenure||20 years|
|Financial Limit||PKR 15 Million to 50 Million|
|Repayment Tenure||Monthly installment not to exceed 50% of the applicant’s net disposable income|
|Work Experience||Satisfactory income estimation, property valuation and legal opinion||Satisfactory income estimation, property valuation and legal opinion|
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
|Loan Tenure||25 Years|
|Financial Limit||PKR 1,400,000|
|Nationality||Pakistani & Non-Resident Pakistanis living in Singapore, Malaysia, Dubai and Bahrain||Pakistani & Non-Resident Pakistanis living in Singapore, Malaysia, Dubai and Bahrain|
|Age Bracket||25 – 60 Years||25 – 65 Years|
|Work Experience||PKR 50,000||PKR 75,000|
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:
Applicants must present a valid copy of CNIC, employment letter and salary slips or bank statements.
For further information visit: Standard Chartered Home Finance