PMRC establishes Rs15 billion fund
Scheme aimed at covering losses of financial institutions on low-cost housing finance
In a first, Pakistan Mortgage Refinance Company (PMRC) - which provides long-term financing to banks for their housing and construction consumers at fixed and comparatively cheaper rates - has established a fund worth Rs15 billion to cover losses, if any, of financial institutions on low-cost housing finance.
The initiative is aimed at encouraging financial institutions - both Shariah-compliant and conventional - to extend housing finance for up to 20-25 years to small loan-seekers.
Earlier, banks were reluctant to offer mortgage financing to people from low and middle-income groups for multiple reasons.