BoP & PMRC ink agreement for affordable housing finance
National
December 16, 2020
LAHORE: The Bank of Punjab and Pakistan Mortgage Refinance Company (PMRC) join hands for providing and promoting affordable housing finance in the country by signing a Credit Guarantee Agreement with Credit Guarantee Trust for low-cost housing, set up by the government with PMRC as trustee. The BoP has become the first bank in Pakistan which has signed a master credit guarantee agreement to avail risk cover for low-income housing finance. BoP has also partnered with PMRC and obtained a refinancing facility. These initiatives will help the bank to partially alleviate the credit risk entailed and provide affordable mortgage facilities to the low-income persons particularly those in the informal sector. The government is committed to providing affordable housing finance to its citizens for economic and social development. BoP President Zafar Masud said, “Housing sector is a niche for us as a growin
PMRC Establishes Rs 15 Billion Fund to Support Low-Cost Housing Finance propakistani.pk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from propakistani.pk Daily Mail and Mail on Sunday newspapers.
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.