Mera Pakistan Mera Ghar: Received applications for over Rs. 200 billion
More than Rs. 200 billion applications have been received by commercial banks under Mera Pakistan Mera Ghar Scheme out of which financing of Rs. 78 billion has been approved.
State Bank of Pakistan Governor Raza Baqir has lauded the progress of the banking industry in strengthening low cost housing loans for first time homeowners under the Mera Pakistan Mera Ghar scheme.
The SBP has released figures as on October 18, 2021, according to which banks have received applications worth over Rs 200 billion. Banks have approved financing of Rs 78 billion out of which Rs 18 billion has been disbursed.
The Governor SBP stressed the need to expedite the approval of applications and said that it should be ensured that people are not discouraged due to excessive processing time. He expressed the hope that with the joint efforts of the concerned parties, the dream of Pakistanis to have their own roof over their heads would come true.
Raza Baqir said that in July 2020, the SBP had directed the commercial banks to increase the share of loans in the housing and construction sectors to 5% of their domestic private sector loans by December 21, 2021. Following individual consultation meetings with banks for assistance in this regard, the SBP gave them quarterly targets which resulted in concerted efforts.
Attention to this component has increased and by the end of the quarter ending September 2021, banks have achieved 94% of the overall targets set. Banks have provided loans of Rs 257 billion till June 30, 2021, while from July to September 2021, they have increased loans to the housing and construction sectors by Rs 48 billion.
To accelerate these efforts, the SBP provided a favorable regulatory environment for the promotion of housing and construction loans. As a result, bank housing and construction loans have risen to Rs 305 billion by September 2021 from Rs 166 billion at the end of September last year, an increase of Rs 139 billion or 84 per cent over the previous year.
Banks have also set up a joint call center to address public queries regarding MPMG, which was recently inaugurated by the SBP governor. The public can call the call center at 0-33-77-786-786. This call center will help in resolving grievances and will help ordinary people who are taking loans under ''Mera Pakistan Mera Ghar''. But banks are finding it difficult to meet the requirements.
Earlier, in January 2021, an online procedure was launched which is very simple. The grievance redressal mechanism consists of an IT-based portal supported by a comprehensive network of staff from SBP and Commercial Banks which solves the problems faced by the applicants within the stipulated time and redressal of grievances. Does, and includes the element of accountability.
Other initiatives taken by SBP in collaboration with NAPHDA, other government agencies, banks and stakeholders include simplification of loan application forms, standardization of facility offer letter, amendment of Prudential Framework, Builders. / Develops a set of risk assessment criteria for developers, develops an income proxy model and harmonizes loan documents.