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GCHF
Gatwala Commercial Hub , Faisalabad is Punjab’s biggest and Pakistan’s second largest mixed use, real estate project. It has a covered area of over 3.1 million sq. ft.

This mega project, designed and developed by Shah Nawaz Associates, is located, at the junction of Canal Expressway and Lahore Sheikhupura Road. The road in front of the GCH project, has an average traffic count of 30 vehicles per minute. become, the city’s next mega center for trade, commerce, industries as well as residential projects.

 

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PMRC sets up fund worth Rs15bn to promote low-cost housing finance

KARACHI: In a bid to promote affordable housing financing, Pakistan Mortgage Refinance Company (PMRC) set up a fund worth Rs15 billion as a Credit Guarantee Trust for low-cost housing, to cover any housing finance loss of the banks.

The first initiative of its kind is a collaboration, signed by PMRC and the Bank of Punjab (BoP), to encourage the banks, both Shariah-compliant and conventional, to extend the existing finance period up till 20-25 years.

The Ministry of Finance and the State Bank of Pakistan (SBP) extended support to set up the credit guarantee fund.

Under this initiative, credit guarantee will be given to the banks at a fixed rate of 2% for 10 years, making it 0.2% per annum. The initiative will cover up to 40% of the losses of banks through this fund.

The financial institutions, including all banks offering low-cost housing finance under the Naya Pakistan Housing Scheme, have agreed to avail the offered guarantee fund in the upcoming week.

Currently, financial institutions offer the housing finance loan at a fixed rate of 5% for the first five years and 7% for the next five years under the Naya Pakistan Housing Scheme

Earlier, the SBP had incentivised the banks to promote low-cost housing loans. Regarding this, the banks were directed to offer at least 5% (around Rs330 billion) of their total loan portfolio for housing and construction up to December 2021.

In addition, the increase in the minimum loan facility allowed the commercial banks to enjoy more markup subsidy facility on the credit, along with the low-cost housing finance incentives as well.

 

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