Six banks sign agreement for affordable housing loans guarantee

Six banks sign agreement for affordable housing loans guarantee

KARACHI (Dunya News) - An agreement was signed by six banks for guarantee of loan for affordable housing on Monday.

Six banks signed a Credit Guarantee Agreement to cover risk in Pakistan Mortgage and Refinance Company’s low-income housing financing. Addressing the function, Deputy Governor State Bank said that SBP has relaxed rules for low-cost housing and it is working together with Ministry of Finance for the affordable housing scheme.

The Deputy Governor SBP, Jamil Ahmed, further said that SBP has set targets for banks to provide loans for affordable housing. Banks who fail to meet said targets will be fined, he added.

Mudassar Hassan Khan, CEO of Pakistan Mortgage Refinance Company, said that there is a need to expedite the affordable housing scheme. The company started operations two years ago, with the aim to remove barriers in long-term funding in the banking sector and ensure adequate loans. This will provide affordable mortgage services to the low-income sections of society, he said.