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 |
|
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
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
|
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.