Housing Loans

Housing is one of the most major expense for any poor family to spent in one go, particularly for those living below poverty line. People in poorer segment face high land prices, complicated or completely absent land titling processes, costly building materials, and low incomes or savings. To manage this situation, many turns to a process called incremental building whereby people build and expand their home over time as either surpluses or support funding becomes available. TMF offer housing finance loans to low-income people to help address this demand. Depending on the product, loans may cover the renovation or expansion of an existing home, construction of a new home, or basic infrastructure improvements, such as electricity or sanitation. Mortgages to purchase a home are less common but exists in some markets. As with other microloans, housing finance loans are typically not secured by collateral, and are largely based on either a group guarantee or other social capital.

Objective

Housing production and preservation result in an adequate supply of ownership that is safe, healthy and affordable to people of low-income levels, races, ages, and suitable for their various needs.
Housing helps to create safe, liveable and sustainable neighbourhoods.
Housing opportunities for all without discrimination.
TMF committed to preventing and ending homelessness. Housing Finance TMF is committed to provide housing finance based on above mentioned objective under following products.

Types of Products

Construction
Purchase
Extension
Repair and Maintenance

Operational Methodology and Eligibility Criteria

Lending Methodology	Individual
Beneficiaries	Male & Female
Age Limit	18 – 60 Years
Eligible individual	Self Employed / Salaried Employed In exceptional cases such as widows, divorcee, issueless couples and unmarried women aged 30 and above, the guarantees of other blood relatives, who do not have inheritance
Coverage Area	City Town & Village
Loan for	Construction
Loan Size	PKR 500,000 to 1,500,000
APR	38%
Duration	60 Months
Disbursement Instalment Frequency	Financing facility will be provided in three instalments at below defined construction stages; First Instalment – 30% at Plinth Second Instalment – 30% at Lenter Third Instalment – 40% at Roof
Recovery Instalment Frequency	Monthly
Criteria	If on Landlord land than NOC from that person Water connection from municipality / Town Committee Land ownership document His / Her vote should be registered in same village, town or city – Evidence Source of income – Small business, salaried employee, pensioner TMF civil engineer will certify stages of constructed home Waterproof Will elevate the land dip to build home so water should not come inside which can be 1 foot above the ground level Solar energy for new build home Two tree plantations for new home Kitchen, washroom mandatory in home Undertaking of not to sell home before clearing all TMF instalments. Monthly instalment should not be more than 30% of his / her income TMF civil engineer will estimate construction cost and TMF will pay 70% of total estimated amount to construct home.
Collateral	Non-collateral (Social Guaranty & Cheque)

House Purchase

Lending Methodology	Individual
Beneficiaries	Male & Female
Age Limit	18 – 60 Years
Eligible individual	Self Employed / Salaried Employed In exceptional cases such as widows, divorcee, issueless couples and unmarried women aged 30 and above, the guarantees of other blood relatives, who do not have inheritance
Coverage Area	City Town & Village
Loan for	Purchase
Loan Size	PKR 500,000 to 1,500,000
APR	38%
Duration	60 Months
Disbursement Instalment Frequency	Financing facility will be provided in one go to the borrower
Recovery Instalment Frequency	Monthly
Criteria	If on Landlord land than NOC from that person Source of income – Small business, salaried employee, pensioner Kitchen, washroom mandatory in home Undertaking of not to sell home before clearing all TMF installments. Monthly instalment should not be more than 30% of his / her income Borrower will provide valuation report from certified valuer to TMF and TMF will pay 70% of total valuated amount to construct home. Disbursement Cheque will be issued on name of Seller party The borrower should have clear and marketable title and the house & apartment should not be more than 45 years old. Borrower should maintain house on his or spouse name.
Collateral	Non-collateral (Social Guaranty & Cheque)

Home Extension and Repair and Maintenance

Lending Methodology	Individual
Beneficiaries	Male & Female
Age Limit	18 – 60 Years
Eligible individual	Self Employed / Salaried Employed In exceptional cases such as widows, divorcee, issueless couples and unmarried women aged 30 and above, the guarantees of other blood relatives, who do not have inheritance
Coverage Area	City Town & Village
Loan for	Extension, Repair and Maintenance
Loan Size	Extension – PKR 300,000 to 700,000 Repair and Maintenance – PKR 100,000 to 300,000
APR	38%
Duration	Extension – Minimum 24 Months Maximum 36 months Repair and Maintenance- Minimum 12 Months Maximum 24 months
Disbursement Instalment Frequency	Financing facility will be provided in one installment
Recovery Instalment Frequency	Monthly
Criteria	If on Landlord land than NOC from that person Bill of Water connection on borrower’s name from municipality / Town Committee Bill of Electricity connection on borrower’s name Land ownership document His / Her vote should be registered in same village, town or city – Evidence Source of income – Small business, salaried employee, pensioner Kitchen, washroom mandatory in home Undertaking of not to sell home before clearing all TMF installments. Monthly instalment should not be more than 30% of his / her income TMF civil engineer will estimate construction cost and TMF will pay 70% of total estimated amount to construct home.
Collateral	Non-collateral (Social Guaranty & Cheque)

Terms and Conditions to protect Environment

If on Landlord land than NOC from that person

Source of income – Small business, salaried employee, pensioner
Kitchen, washroom mandatory in home
Undertaking of not to sell home before clearing all TMF installments.
Monthly instalment should not be more than 30% of his / her income
Borrower will provide valuation report from certified valuer to TMF and TMF will pay 70% of total valuated amount to construct home.
Disbursement Cheque will be issued on name of Seller party

The borrower should have clear and marketable title and the house & apartment should not be more than 45 years old.

Borrower should maintain house on his or spouse name.