Does any bank, financial institution offer home financing for Bahria, Rawalpindi?
There would be many banks providing house loans. But brother why do want to get a house loan and then pay interest on the capital value.
This is totally Haraam and a very big sin in Islam. Its better to live in a rented house than to buy a house through a process that involves the payment of interest.
Please avoid !!!
regards, z@in N@deem
Zameen has a blog on it which might prove helpful to you. Here is the link: http://blog.zameen.com/prerequisites-for-applying-for-loan-in-pakistan-part-2/
its got all the information you will need
@Zain : Of course dost, but there is islamic financing available like meezan, bank alfalah etc also. I just want to know if they do it for bahria
Yes these banks provide financing for construction/purchase of home in bahria. Usually those areas are included in negative list where there is a chance of dispute over title deed of property. Since this is not a problem in Bahria, so just about any bank will provide you with that facility. Have you spoken to any bank yourself?
@Syed Amjad: I asked Bank Alfalah Islamic guys and they said that they finance in Bahria since the ownership is technically not transferred to Buyer in RDA books. Case is different for places like Scheme III, CDA sectors etc. My question is basically regarding that. Do any of the forum members know someone personally who has taken islamic financing option for Bahria Town?
@WajihulHasan. After reading your post, I checked with 4 banks today where I have some close friends working. To my utter shock, I was told none of them finance in Bahria!! I asked a friend of mine who works as a manager in meezan bank about the reason, and the answer he gave me was quite disturbing and might reflect negatively on Bahria. So I will hold on to that for now and try to check with some other banks also before posting further details. Its a real shocker!
That is shocking SyedAmjad, can you please explain why ? Do they finance in CDA ? If yes, then why not in Bahria ?
@NasirKhurshid. Yes I know, its quite a shock, but the reason I have been told for this is even more serious, or atleast that is what I think. However, I would like to confirm with atleast 2-3 other banks of good repute before I post the details as Bahria Town is a major housing project providing quality residential services, and it would be best to double check on such information before posting it.
told ya
CDA transfers the ownership under your name while Bahria just updates their own books. RDA is not involved. I think there is some fee (around 2 lacs) that one can pay to RDA and get Bahria plots registered under their books also; not sure if that would change things. Plus not all bahria land has been acquired entirely legally and banks won't finance something if there is even a 1% chance of litigation.
Cooperative housing societies like MPCHS (B-17/F-17) are good in this regard as they are legally more correct. But lets see what Syed Amjad finds out also.
Today I was able to check with a couple of other banks also and the story is pretty much the same....They do Not Finance in Bahria Town. Here is what their version is:
"Bahria Town being a private enterprise, owns the land for its project. As per the law, only a housing authority or coop societies can transfer land on behalf of the government (for legally recognized transfers). Therefore, CDA, RDA, DHA, LDA are all authorities and can legitimately transfer land ownership on their own. Private ownerships cannot do so independent of the relevant authority. Since Bahria is neither an authority nor a cooperative society, a land transfer through its letter head without involving the relevant authority is not a genuine transfer, as the land still belongs to Bahria as per the relevant authority record, and you cannot get it transferred, unless Bahria allows you such a transfer, which it normally does not. Therefore, if you want a home loan, the bank cannot extend this facility as the possession letter you get from Bahria is not a land ownership letter. And because the land does not technically belong to you, you cannot mortgage it with the bank." Thats what these banks say.
Now I know that most banks have a big legal dept and they are usually quite conservative in their approach but I am not fullly convinced with this argument. If a plot transfer in Bahria is not considered a land transfer by the govt, why do you have to pay CVT on each purchase? Why is it treated as an immovable asset in your tax declaration? Is FBR not a part of the govt? It doesnt make sense to me. What do you guys think? Are the banks just playing it safe? Maybe Bahria should consider launching its own home financing service.