Naya Pakistan Housing Scheme: SBP revises markup, subsidy period plan

KARACHI: The State Bank of Pakistan (SBP) has revised the markup rates and subsidy payment period for financing the housing in Naya Pakistan Housing & Development Authority (NAPHDA), ARY News reported on Monday.

The central bank has made amendments to the financing plan of the Naya Pakistan Housing Scheme, reducing the mark-up rates and modifying the subsidy payment period under Tier 1.

A circular was issued by the State Bank of Pakistan (SBP) after bringing amendments to the housing finance plan after receiving feedback from various stakeholders.

Under the modified plan, the markup was reduced from three per cent to two per cent for Tier 1 customers for year 1 to year 5, whereas, the markup pricing was fixed at four per cent after a reduction from five per cent for year 6 to year 10.

The markup rate was fixed at five per cent for Tier 1 customers for year 11 to year 15 on the loans acquired for housing units under the NAPHDA projects.

It has been notified that for loan tenors exceeding 15 years, the market rate that is bank pricing will be applicable for the period exceeding 15 years.

The central bank stated in its circular that the revised pricing will be applicable with immediate effect, whereas, other features of the scheme shall remain unchanged.